Federal Estate and Gift Tax advanced

If Taxable Estate			Tentative Tax Is
Is Over $	But Not Over $	Tax $	Plus %	Of Excess Over $
0	10,000	0	18%	0
10,000	20,000	1,800	20%	10,000
20,000	40,000	3,800	22%	20,000
40,000	60,000	8,200	24%	40,000
60,000	80,000	13,000	26%	60,000
80,000	100,000	18,200	28%	80,000
100,000	150,000	23,800	30%	100,000
150,000	250,000	38,800	32%	150,000
250,000	500,000	70,800	34%	250,000
500,000	750,000	155,800	37%	500,000
750,000	1,000,000	248,300	39%	750,000
1,000,000	1,250,000	345,800	41%	1,000,000
1,250,000	1,500,000	448,300	43%	1,250,000
1,500,000	2,000,000	555,800	45%	1,500,000
2,000,000	2,500,000	780,800	49%	2,000,000
2,500,000	3,000,000	1,025,800	535%	2,500,000
3,000,000	10,000,000	1,290,800	55%	3,000,000
10,000,000	17,184,000	5,140,800	60%	10,000,000
17,184,000		9,451,200	55%	17,184,000

Each person has a unified credit which will reduce the amount of estate or gift taxes which must be paid. For 2000 and 2001, this credit is $220,550, equivalent to having $675,000 of assets not subject to federal estate tax. Over the next few years, the unified credit will increase, as will the equivalent amount of estate assets not subject to the estate tax (the "applicable exclusion amount"). The table below shows these changes.

Estates over $10,000,000 have a 5% surcharge until the benefit of the lower graduated tax brackets has been recaptured.

If the state in which the decedent lived imposes a state death tax, a credit is allowed for all or a portion of this tax in determining the amount of federal estate tax due.

Many states collect only the amount of the maximum credit allowed. The chart below may be used to calculate the credit.

Year	Unified Credit	Applicable Exclusion Amount
2000 and 2001	110,550	675,000
2002 and 2003	229,800	700,000
2004	287,300	850,000
2005	326,300	950,000
2006 and later	345,800	1,000,000