Estate, Gift and GST Taxes in 2013

01/07/2013

On January 2, 2013, Congress and President Obama agreed on changes to the tax law.  The new law is called the American Taxpayer Relief Act or ""ATRA."

This new law dealt with estate, gift and generation-skipping transfer taxes.  Here is a quick summary of of ATRA as it relates to estate, gift and generation-skipping transfer taxes:

  • 2013 federal estate tax exemption = $5.25 million, indexed for inflation in future years; top tax rate = 40%
  • 2013 federal lifetime gift tax exemption = $5.25 million, indexed for inflation in future years; top tax rate = 40%
  • 2013 generation skipping transfer tax exemption = $5.25 million, indexed for inflation in later years; top tax rate = 40%
  • Portability of the estate tax exemption between married couples has been made permanent for 2013 and future years

Also, for gift tax purposes, the annual exclusion has increased to $14,000.