California Estate Planning Blog by Kevin Staker

November 12, 2012

Estate Tax Five Scenarios

Filed under: estate tax,estate tax news,Kevin Staker — Kevin Staker @ 3:01 pm

Politico has a good article on the possible outcomes on the “fiscal cliff”, part of which is the estate tax changes.  This is located at

Personally I believe the most likely outcome is that nothing will be agreed to by January 1st.  However, President Obama and the Democrats will then likely win the game of chicken with the Republicans.

To summarize, below are the changes that will go into effect on January 1st if the President and the Congress do not act:

                                                                                                                     Present                                                            January 1, 2013

Estate Tax Exemption                                                                 $5,120,000                                             $1,000,000

Gift Tax Exemption                                                                      $5,120,000                                             $1,000,000

Generation-Skipping Transfer Tax Exemption                                    $5,120,000                                             $1,340,000

Maximum Tax Rate for the Above Taxes                                          35 percent                                              55 percent*

Unused Estate Tax Exemption from Deceased

Spouse to Surviving Spouse  (“portability”)                                    Yes                                                               No

(* Actually 60 percent on estates/gifts above $10,000,000 and under $17,184,000.)

Kevin Staker

Federal Estate Tax News Blog


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