Estate Tax Changes 2013.

The estate tax exemption was about to go down to $1,000,000 starting January 1, 2013, but the 2012 Tax Relief Act permanently extended the $5,000,000 gift and estate tax exemption. That exemption is projected to be $5,250,000 for 2013, and through indexing it will go up in the future. The estate and gift tax rate is 40% (a compromise between the 45% rate that the Congressional Democrats wanted and the 35% rate that the Congressional Republicans wanted)

Portability, the ability of the surviving spouse to file a timely estate tax return for the first-spouse-to-die and to thereby add that spouse’s exemption to the surviving spouse’s own exemption, has been made permanent.

Unless and until new legislation is enacted, taxpayers no longer need to worry about the estate tax exemption going down or the portability legislation going away.

Advertisements

About randyspiro

I am a super lawyer in California with dual specialization in Estate Planning and Taxation.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s