What was the estate tax credit (exemption equivalent) unified with for the year 2011?

In 2011, the estate tax credit, also known as the exemption equivalent, was unified with the federal gift tax credit. This means that individuals could use the same exemption amount for both estate and gift taxes. Prior to this unification, estate and gift taxes operated with separate exemption limits, but the changes allowed individuals to leverage a single unified credit against both types of taxation.

This unification was part of the broader effort to simplify the tax implications for individuals transferring wealth, whether during their lifetime (gift tax) or after their death (estate tax). As a result, the allowable exemption amount for both gifts and estates was aligned, providing a comprehensive approach to wealth transfer taxation.

The other options do not accurately reflect the relationship present in 2011. The federal income tax credit operates independently from estate and gift taxes, while state inheritance taxes vary by state and do not have a unifying structure with federal estate or gift taxes. Additionally, the gift exclusion amount for heirs was related more specifically to the annual exclusion for gifts rather than the overall unified credit system encompassing estate and gift taxes.