According to CCH, a leader in tax and accounting services and software, here’s how things will change at the end of 2012 unless, of course, Congress tinkers with the rules again:
2011-2012
2013-?Maximum Tax Rate
35% on excess over $5 million
Phases in starting with estates in excess of $1 million. Maximum of 55% on estates over $3 million (effectively for estates in excess of $10 million, but less than $17,184,000)Maximum Gift Tax Rate
35% on transfers in excess of $5 million over the course of the donor’s lifetime
Phased in starting with gifts in excess of $1 million. Maximum of 55% on gifts in excess of $3 million over the course of the donor’s lifetime (effectively 60% of transfers in excess of $10 million, but less than $17,184,000)Clearly, unless you’re extremely wealthy and willing and able to part with significant assets before the end of 2012, these lower amounts aren’t of much interest.
To Give or Not to Give? The 2-Year Estate Planning ‘Opportunity’ – FoxBusiness.com