 First established in 1932 as a means to raise tax revenue from the wealthiest Americans, the inheritance tax was put at a nominal rate of 25% points lower than the estate tax which meant its effective rate was 18.7%.Its exemption, up to $50,000, was the same as the estate tax exemption.Under current law, individuals can give gifts of up to $13,000 without incurring a tax and couples can poll their gift together to give a gift of up to $26,000 a year without incurring a tax.