The Estate Tax is a Federal Transfer Tax. Congress allows each of us to pass a certain amount of assets tax-free during our lifetime or at death. This is known as the Federal Estate and Gift Tax Exemption. Currently, each individual can pass up to $11,180,000 in 2018 and $11,580,000 in 2020, indexed for inflation ($5,000,000 on January 1, 2026) tax-free in the form of lifetime gifts or at death. Any amount transferred in excess of this amount is subject to either a Gift or Estate Tax.