The IRS announced that the 2016 estate and gift tax exemption is $5.45 million per individual, which is up from $5.43 million in 2015. That means an individual can leave $5.45 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield $10.9 million from federal estate and gift taxes.

The annual gift exclusion remains the same at $14,000 for 2016.