With the passage of the American Taxpayer Relief Act of 2012, Congress made the exemption amount for estate, gift and generation skipping tax permanently set at $5 million. The $5 million is indexed for inflation starting in 2013. We project the 2013 indexed exemption amount to be $5,250,000.
This means that anyone dying (or gifting) in 2013 with a total taxable estate of less than $5,250,000 will not have to pay an estate tax on the assets transferred to their heirs.
If you have any questions regarding the new estate tax exemption limit or other estate planning strategies, please do not hesitate to contact us.