The American Taxpayer Relief Act of 2012 and Estate Taxes
January 8, 2013
Last week, the U.S. Congress passed the American Taxpayer Relief Act of 2012 (ATRA), thereby cementing the Bush-era estate tax rates. For estate tax purposes, this means the following:
1. The unified estate tax exemption amount will be 5.12 million dollars per person, indexed for inflation in the future.
2. The maximum estate tax rate will be 40%.
3. Gifts made above the annual exclusion amount of $14,000 per person will be taxed at 40% and deducted from the unified 5.12 million dollar exemption.
4. The executor of a deceased spouse's estate can transfer any unused estate tax exemption amount to the surviving spouse.
The best part of the ATRA is that, unlike past estate tax laws, this law is permanent and will not expire at a future date. This allows your estate planning professionals greater certainty in planning for your estate.
Tel. (281) 678-1288 | 19901 SW FWY, Ste 244, Sugar Land, TX 77479 | cpuvvada@puvvadalaw.com
*The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer-client relationship. Persons accessing this site are encouraged to seek counsel for advice regarding their individual legal issues.
**Chikeersha Puvvada is responsible for the content of this site.