Annual Exclusion, Applicable Credit Amount, Applicable Exclusion Amount, Basic Exclusion Amount, DSUE, Estate Tax, Estate Tax Return, Form 706, Form 709, Future Interest, Gift Splitting, Gift Tax, Gift Tax Return, Present Interest, Unified Credit
The estate tax and gift tax work together to form a complex tax structure. Presently, both taxes share a $5,490,000.00 basic exclusion amount for each individual and a 40% tax rate for 2017. Furthermore, the IRS created the applicable credit amount (also known as the unified credit) that must be used to offset any assessed gift tax or estate tax. Because of this tax structure, very few individuals will pay a gift tax or estate tax. However, the impact of the estate tax and gift tax on your estate depends on the size of your estate.