Under current law, the amount of assets you can pass after your death without incurring estate tax (known as the estate tax exemption amount) varies depending upon the year of your death.
Estate tax exemption amounts
| Calendar year | Estate tax exemption |
|---|---|
| 2005 | $1,500,000 |
| 2006 | $2,000,000 |
| 2007 | $2,000,000 |
| 2008 | $2,000,000 |
| 2009 | $3,500,000 |
| 2010 | $5,000,000 |
| 2011 | $5,000,000* |
| 2012 | $5,120,000* |
| 2013 | $5,250,000* |
* This amount will be adjusted for inflation annually.
The estate tax exemption amount is reduced dollar-for-dollar if you've used all or part of the $5.25 million gift tax exemption during your lifetime.
Keep in mind that South Dakota does not impose an estate or inheritance tax.
Source: The Vanguard Group, Inc.
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