2012 Estate, Gift and GST Tax Adjustments to Exemptions and Exclusions

10/27/2011

The IRS recently released Revenue Procedure 2011-52 which announced an increase in the federal estate tax exemption from $5,000,000 to $5,120,000 for estates of decedents who die in 2012.  The lifetime gift tax exemption and GST tax exemption will also increase from $5,000,000 to $5,120,000 in 2012.

The annual gift tax exclusion amount will remain at $13,000 for 2012.

For people who are into history and what to follow the progression of the changes in the estate and gift tax law, I have provided some charts.

What follows is a historical and future chart of the federal estate tax exemption and rates from 1997 to 2013.

YearEstate Tax ExemptionTop Estate Tax Rate
1997$600,00055%
1998$625,00055%
1999$650,00055%
2000$675,00055%
2001$675,00055%
2002$1,000,00050%
2003$1,000,00049%
2004$1,500,00048%
2005$1,500,00047%
2006$2,000,00046%
2007$2,000,00045%
2008$2,000,00045%
2009$3,500,00045%
2010$5,000,000 or $035% or 0%
2011$5,000,00035%
2012$5,120,00035%
2013$1,000,00055%

What follows is a historical and future chart of the federal gift tax exemption and rates.

YearGift Tax ExemptionTop Gift Tax Rate
1997$600,00055%
1998$625,00055%
1999$650,00055%
2000$675,00055%
2001$675,00055%
2002$1,000,00050%
2003$1,000,00049%
2004$1,000,00048%
2005$1,000,00047%
2006$1,000,00046%
2007$1,000,00045%
2008$1,000,00045%
2009$1,000,00045%
2010$1,000,00035%
2011$5,000,00035%
2012$5,120,00035%
2013$1,000,00055%
 
 
What follows is the historical and future federal gift tax annual exclusion amount.
 
 
YearAnnual Exclusion Amount
1997$10,000
1998$10,000
1999$10,000
2000$10,000
2001$10,000
2002$11,000
2003$11,000
2004$11,000
2005$11,000
2006$12,000
2007$12,000
2008$12,000
2009$13,000
2010$13,000
2011$13,000
2012$13,000