The estate and gift taxes did survive but with significant increases to their exclusion amounts.

Currently, the exemptions for federal gift tax, estate tax, and generation-skipping transfer (GST) tax are at historic highs, and the gift, estate, and GST tax rates are at historic lows. But, in 2013, the exemptions are scheduled to substantially decrease, and the tax rates are scheduled to substantially increase.

Every year the IRS automatically adjusts certain tax rules based upon current inflation levels.

The gift tax is often misunderstood since it is not the recipient that owes the tax but the giver. Generally speaking, one may be responsible for paying federal gift tax if you give away a lot of money or other assets. Under current federal tax law, up to $13,000 annually may be gifted to any number of individuals without incurring a federal gift tax liability. There is also a one million dollar lifetime limit on gifts. Any gifts exceeding these amounts will most likely require the filing of an IRS Form 709. Read for more details.