The estate and gift tax exemption for 2014 has increased to $5,340,000. The rate remains at 40%. The gift tax exclusion remains at $14,000 per donee.
Just 20 short years ago, the estate and gift tax exemption was $600,000, the top rate was 55%, and the gift tax exclusion was $10,000 per donee.
So if a married couple collectively worth $10,680,000 both die in 2014, their estate tax bill will be $0. If that same couple with the same net worth both died in 1994, their estate tax bill would have been $5,322,000.