Fidelity Capital Management

Unified and Estate Gift Tax Credit

You may think estate planning is only for the wealthy. But, adding up your own assets can be an eye-opening experience. By the time you account for your home, investments, retirement savings and life insurance policies, you may find yourself in the over-$600,000 category. 

If you have assets worth more than $600,000, estate planning will benefit your heirs:  Taxable estates worth in excess of $600,000 may be subject to federal taxes, which can be as high as 55% of the taxable estate. Beginning 1998, the unified estate and gift tax credit was increased to $1,000,000. The increase will be phased in through a series of steps until 2006.

Even in estates of less than $600,000, estate planning may be necessary to be sure your intentions for disposition of your assets are carried out. 
Schedule of Increases
Year
Unified Credit 
Offset Tax On
1997
$192,800
$600,000
1998
$202,050
$625,000
1999
$211,300
$650,000
2000
$220,550
$675,000
2001
$220,550
$675,000
2002
$229,800
$700,000
2003
$229,800
$700,000
2004
$287,300
$850,000
2005
$326,300
$950,000
2006
$345,800
$1,000,000