2012 Estate, Gift and GST Tax Adjustments to Exemptions and Exclusions
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.
| Year | Estate Tax Exemption | Top Estate Tax Rate |
| 1997 | $600,000 | 55% |
| 1998 | $625,000 | 55% |
| 1999 | $650,000 | 55% |
| 2000 | $675,000 | 55% |
| 2001 | $675,000 | 55% |
| 2002 | $1,000,000 | 50% |
| 2003 | $1,000,000 | 49% |
| 2004 | $1,500,000 | 48% |
| 2005 | $1,500,000 | 47% |
| 2006 | $2,000,000 | 46% |
| 2007 | $2,000,000 | 45% |
| 2008 | $2,000,000 | 45% |
| 2009 | $3,500,000 | 45% |
| 2010 | $5,000,000 or $0 | 35% or 0% |
| 2011 | $5,000,000 | 35% |
| 2012 | $5,120,000 | 35% |
| 2013 | $1,000,000 | 55% |
What follows is a historical and future chart of the federal gift tax exemption and rates.
| Year | Gift Tax Exemption | Top Gift Tax Rate |
| 1997 | $600,000 | 55% |
| 1998 | $625,000 | 55% |
| 1999 | $650,000 | 55% |
| 2000 | $675,000 | 55% |
| 2001 | $675,000 | 55% |
| 2002 | $1,000,000 | 50% |
| 2003 | $1,000,000 | 49% |
| 2004 | $1,000,000 | 48% |
| 2005 | $1,000,000 | 47% |
| 2006 | $1,000,000 | 46% |
| 2007 | $1,000,000 | 45% |
| 2008 | $1,000,000 | 45% |
| 2009 | $1,000,000 | 45% |
| 2010 | $1,000,000 | 35% |
| 2011 | $5,000,000 | 35% |
| 2012 | $5,120,000 | 35% |
| 2013 | $1,000,000 | 55% |
What follows is the historical and future federal gift tax annual exclusion amount.
| Year | Annual 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 |