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Federal Estate and Gift Taxes

Federal Estate and Gift Taxes
Congress gave us Temporary Estate and Gift Tax Relief until December 31, 2012
What the Relief means in 2011 and 2012: 1. The first $5,000,000.00 of the value of each estate is exempt from Federal Estate Tax. 2. There is a cost of living adjustment that could increase the $5,000,000.00 exempt value in 2012. 3. Surviving spouse may be able to use the unused exclusion amount of their deceased spouse (Would be able to use full $10,000,000.00 exemption between the two estates). 4. Maximum Estate tax rate is 35%. 5. Restores the basis of estate assets to date of death values. 6. Gift tax exclusion amount will also be $5,000,000.00 and the gift tax rate will be 35%. 7. Will be able to use the exclusion when figuring either gift taxes or estate taxes. In 2013 we go back to a $1,000,000.00 exemption, a top rate of 55% and more drama.

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