Fiscal Cliff News
The latest word that we have is that the President will sign a bill on January 2, 2013 averting many of the tax increases that were associated with the Fiscal Cliff. The one our clients have been specifically concerned about was the decrease of the amount exempt from estate tax from $5,120,000 to $1,000,000.
This decrease has been averted. The estate tax exemption for one person remains at $5,120,000. The estate tax exemption for a couple is double that.
The few other details we have about the estate tax right now is that the portability provisions have been continued; the exempt amounts will be adjusted for inflation over the next decade making them even larger as time goes by; and the rate of tax, previously set at 35%, has been increased to 40%.