The 2010 Tax Relief Act made tax-saving changes to the estate and gift tax scheme that apply to estates transferring in 2011 and 2012.
The bill set a lower rate and higher exemption for estates transferring in 2011 and 2012. The top rate was lowered to 35% and the exemption was reduced to $5 million for 2011 along with an increase for inflation in 2012. However, it should be noted that after 2012 the top rate will be 55%, and the exemption will be $1 million.
If you have any questions on estate tax rates and exemption limits, or on tax planning in general, please contact our office.
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