The $5.12 milllion per-person exclusion from federal estate and gift tax was set to expire on Dec. 31st and lower to $1 million. In addition, taxes on transfers over that amount would increase to 55%. RL-- Do you know if that was changed by the last minute "fiscal cliff" negotiations that took place?
Yes, it was extended, made permanent, and indexed for inflation. The 2013 Unfied Credit (amount that can be transferred without gift or estate tax) is $5,250,000 per person for lifetime gifts and estate transfers. The portability of the Unified Credit is also made permanent, but you are still better off using a Credit Shelter Trust in your Will. The tax rate now maxes out at 40%.
