On January 3, 2013, President Obama signed the American Taxpayer Relief Act of 2012 into law. As a result, for the first time in over 12 years, there is now some certainty in the Federal estate tax, the Federal gift tax and the Federal generation-skipping transfer (or “GST”) tax. Under the new law, in general:
- The exemption from the Federal gift tax is US$5.25 million in 2013. This amount will rise with inflation in future years.
- The exemptions from the Federal estate tax and the GST tax are US$5.25 million each in 2013. These exemptions will also rise with inflation in future years.
- The tax on amounts transferred in excess of these exemptions is now 40 percent...
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Topics: American Taxpayer Relief Act, Estate Tax, Generation-Skipping Transfer, Gift-Tax Exemption, Portability, Tax Exemptions, Tax Rates
Published In: Tax Updates, Wills, Trusts, & Estate Planning Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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