The Administration’s recently-released budget for 2013 proposes changes to the estate, gift and generation-skipping transfer tax laws that would eliminate many of the opportunities that are currently available that allow property to be transferred to family members upon favorable terms. The Administration's proposals include the following:

..Reducing the gift tax exemption from $5.12 Million to $1 Million and the estate tax and generation-skipping transfer tax exemption from $5.12 million to $3.5 Million...