Every year, the Federal Gift and Estate Tax Exemptions are indexed for inflation. This year (2015), the gift and estate tax exemption is $5,430,000. Next year (2016), the gift and estate tax exemption if $5,450,000. As a result, an individual can transfer up to $5,450,000 during her life and at her death without paying any gift or estate tax. Amounts transferred in excess of $5,450,000 are taxed at a 40% rate.

The annual gift tax exclusion remains at $14,000 for 2016 ($148,000 to a non-citizen spouse).