| 2010 | 2011 | 2012 | 2013 | |
| Estate Tax | ||||
| Exemption amount * | $5.0 million | $5.0 million | $5.0 million (indexed for inflation) | $1.0 million |
| Tax rate | Flat (35%) | Flat (35%) | Flat (35%) | Progressive (up to 55%) |
| Elections | Can elect out of estate tax, but §1022 carryover basis will apply ($1.3 million “free-basis” + $3.0 million spousal bonus) | Can elect to add “deceased spousal unused exclusion amount” (basically, the unused exemption from the estate of the decedent’s last deceased spouse or the exemption amount in effect at the decedent’s death, whichever is less) to the exemption amount | Can elect to add “deceased spousal unused exclusion amount” (basically, the unused exemption from the estate of the decedent’s last deceased spouse or the exemption amount in effect at the decedent’s death, whichever is less) to the exemption amount | NoneNote that these estate tax laws may become political at the 2012 Presidential election, depending on the deficit and economy. |
| Gift Tax | ||||
| Exemption amount | $1.0 million | $5.0 million (plus, if elected, the “deceased spousal unused exclusion amount”) | $5.0 million (indexed for inflation) (plus, if elected, the “deceased spousal unused exclusion amount”) | $1.0 million |
| Tax rate | Flat (35%) | Flat (35%) | Flat (35%) | Progressive (up to 55%) |
| Generation-Skipping Transfer Tax | ||||
| Exemption amount | $5.0 million | $5.0 million | $5.0 million (indexed for inflation) | $1.0 million(indexed from 1997) |
| Tax rate | Zero | Flat (35%) | Flat (35%) | Progressive (up to 55%) |
* Note the evolution of estate tax exemption amounts: $600,000 in 1997; $625,000 in 1998; $650,000 in 1999; $675,000 in 2000-2001; $1,000,000 in 2002-2003; $1,500,000 in 2004-2005; $2,000,000 in 2006-2008; $3,500,000 in 2009.
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