Estate Planning: Federal Estate Taxes - T. Rowe Price

Also known as the "estate tax exemption equivalent amount", this is the total amount per deceased person that can be transferred to individuals free of any estate tax (there is no limit on what can be left to a spouse who is a U.S. citizen). Also, the federal estate tax exemption amount is reduced by the total of any taxable gifts made during the deceased's lifetime. In calculating the size of the deceased's taxable estate, several deductions are available that may reduce the amount of the estate subject to federal estate taxes, such as the unlimited marital and unlimited charitable estate tax deductions.

For more information on the federal estate tax exemption, visit the estate tax section of the IRS website.