
The estate transfer tax, sometimes referred to as the “death tax”, is a transfer tax imposed at the same rates as the gift tax, up to 45%, on transfers occurring at the decedent's death. Each decedent has a unified credit exemption ($2,000,000 in 2008) from the tax, unless such exemption is used to exempt gifts made during lifetime. All money that is over that federal unified credit exemption is taxed at fairly high rates. Effective estate tax planning uses various tools in order to help reduce the burden of such taxes.