The IRS recently announced the estate and gift tax limits for 2016.
In 2016, the exemption amount for individuals increased from $5.43 million to $5.45 million, which means that individuals can leave that much to their heirs with no estate tax or gift tax liability.
Married couples can shield double that amount from estate and gift taxes with a portability election on the estate tax return of the first spouse to die.
The annual gift tax exclusion, the amount an individual can give another person without incurring any gift tax liability, remains at $14,000.
Federal estate and gift tax exemptions are indexed for inflation.