Estate and Gift Tax Laws Change-
New Federal Estate Tax Laws

Congress has finally passed a new federal estate tax laws that become effective January 1, 2011.  The new law is in effect for the years 2011 and 2012 only.  The federal estate tax rate is now a 35% tax rate if your assets exceed $5 million dollars ($10 million for couples).

The new rules make the $5 million dollar exemption portable between spouses.  If the first spouse to die does not exempt $5 million from estate taxes, the second spouse to die can take advantage of any unused portion allowing $10 million dollars to pass tax free to their heirs.

The gift tax exclusion has been increased to $5 million dollars.  The gift tax is 35% for all gifts of more than $5 million dollars.  The $13,000 annual exclusion amount for gifts remains in place.

Learn more about these changes by clicking here.

We do not know what the estate tax and gift tax laws will be after 2012.  We will publish such information on our website when these changes are made.  Until then, keep your crystal ball handy.

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