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. →

Three words. It all depends. As ridiculous as it sounds, it all depends on what year you die. For example, if you died this year or next, you would have a $5,000,000 estate tax exemption under current law. Beyond that, no one knows what the estate tax free amount will be. The law on the … Continue reading Will there be estate tax due when I die? →

          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 … Continue reading NEW Estate Tax, Gift Tax, and Generation Skipping Transfer Tax Laws →

In the “General Explanations of the Administration’s Fiscal Year 2012 Revenue Proposals” (Feb. 14, 2011), the Treasury Department explained how the President’s 2012 budget proposals presume several important changes in the estate, gift, and GST taxes.  These changes include restoring the 2009 estate, gift and GST tax rules on January 1, 2013.  These would include … Continue reading President Obama’s February 2011 Assumption for 2013 estate tax exemption →