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The exemption amount for estates was increased incrementally from $675,000 for 2001 deaths to $2 million for deaths in 2006 (Figure A).
Annual exclusionThe annual amount of gifts, to any single beneficiary, which are exempt from Federal gift taxation. For 2007, the annual exclusion amount was $12,000. BeneficiaryThe recipient of income or assets from a trust, will, or life insurance policy.
During the years 2002 through 2010, the gift tax applicable exclusion amount remained constant at $1 million, while the estate tax applicable exclusion amount was $1 million in 2002 and 2003, $1.5 million in 2004 and 2005, $2 million in 2006 through 2008 and $3.5 million in 2009.
Annual exclusion. A separate annual exclusion ap- plies to each person to whom you make a gift. For 2006, the annual exclusion is $12,000.
Federal Estate and Gift Tax Rates, Exemptions, and Exclusions, 1916-2014 YearEstate Tax ExemptionMaximum Estate Tax Rate2005$1,500,00047%2006$2,000,00046%2007-08$2,000,00045%2009$3,500,00045%33 more rows Feb 4, 2014
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gifts has decreased from 47 percent in 2005 to 46 percent in 2006, and will remain at 45 percent for 2007, 2008, and 2009. highest gift tax rate will be decreased to 35 percent for 2010. The changes to the applicable exclusion amounts are discussed later in this publication.
Annual exclusion. The exclusion for 1998 through 2001 was $10,000 and for 2002 through 2005 the exclu- sion was $11,000. For 2006 and 2007 the amount is $12,000. Thus, in 2007, you generally can give up to $12,000 each to any number of people in 2007 and none of the gifts will be taxable.
Annual exclusionThe annual amount of gifts, to any single beneficiary, which are exempt from Federal gift taxation. For 2007, the annual exclusion amount was $12,000. BeneficiaryThe recipient of income or assets from a trust, will, or life insurance policy.

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