Category Archives: Estate Planning

Repeal of estate tax proposal pending

H.R.1259 –  This bipartisan House bill would permanently repeal the federal estate tax, repeal the federal generation-skipping transfer tax, and extend the $5.12 million lifetime gift tax exemption and 35% gift tax rate. Currently the bill has approximately 194 co-sponsors. Of course, only time will tell what will happen in this election year.

House Bill Introduced to Reduce Estate Tax Exemption to $1,000,000

Congressman Jim McDermott (D-WA) just  introduced HR 3467 the “Sensible Estate Tax Act of 2011,”  which would reduce the estate tax exemption to $1,000,000 for taxpayers who die after this year.  The $1M exemption would be indexed for inflation, with a 55% top tax rate. This bill appeared “dead on arrival.”  But for details on … Continue reading House Bill Introduced to Reduce Estate Tax Exemption to $1,000,000

New Estate Tax Exemptions, Gift Tax Exemptions, Generations Skipping Transfer Tax Exemptions for 2012 and Beyond

2010  2011  2012  2013  Estate Tax  Exemption amount *  $5.0 million  $5.0 million  $5,120,000  $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 … Continue reading New Estate Tax Exemptions, Gift Tax Exemptions, Generations Skipping Transfer Tax Exemptions for 2012 and Beyond

New, portability of unused estate tax exemption for married couples offers simple “2 for 1” plans.

Thanx to the December 16, 2010 federal tax legislation, married couples now get a simple, non-trust “two for one” estate tax exemption, doubling up the amount that a surviving spouse can leave without estate tax. The concept is called “portability” of unused estate tax exemption, and it has never existed before. It has enormous, positive … Continue reading New, portability of unused estate tax exemption for married couples offers simple “2 for 1” plans.