Connie's Corner

About Estate Taxes
Congress recently passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. While the bill covers a lot of ground, below are a few highlights pertaining to estate tax concerns specifically:

  • The exemption for the estate, gift, and generation skipping transfer taxes is $5 million per person ($10 million per couple) through the end of 2012.
  • The top tax rate has been set at 35%, down from the previous maximum of 45%.
  • Gift and estate taxes have been "recoupled." Prior to the 2010 Tax Relief Act, the gift tax exemption had been $1 million per person with the estate tax exemption set at $3.5 million per person. This bill reunifies these tax exemptions.
  • It is now easier to to transfer unused exemption from the estate of a deceased spouse- credit shelters and the like are no longer necessary.
It's a good time to review your estate plans to ensure that they meet your needs in light of this new tax environment. While your estate tax liability may have temporarily fallen, it is unclear what will happen to these taxes when this bill expires at the end of 2012.

« Back to Connie's Corner