As of January 1, 2011, the federal estate tax came back into full effect with a $5 million exclusion. At the same time, the exclusion from federal gift tax was raised to $5 million so that the exclusions are once again unified. The result of this is that each person may transfer during his life or at his death a total of $5 million before tax is imposed. Estate Tax will be imposed on transfers in excess of $5 million, at a flat 35% tax rate. As in the past, there are deductions for certain transfers to spouses and charitable organizations.
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