Post Election Table of Possibilities, for Estate and Gift Taxes

Estate, Gift, and GST Tax Parameters (thanks to David Lane)


Rule in Effect in 2012 Rule scheduled to go into effect after Dec 31, 2012 Rule proposed by Obama Administration (General Explanations of the Administration’s Revenue Proposals, so called “Green Book”)
Highest Federal  estate tax   rate 35% 55% (plus 5% surtax between $10 andapprox. $17.2 Million) 45%
Federal estate taxequivalent exemption $5,120,000 $1 Million $3.5 Million
Portability of estate tax  equivalent exemption to    

surviving spouse

Yes No Yes
Basis adjustment rule Date of Death(or AVD)


Date of Death(or AVD)


Not stated explicitly but appears to endorse Date of Death (or AVD)Value
Highest Federal gifttax rate 35% 55% (plus 5% surtax between $10 andapprox.  $17.2 Million) 45%
Federal gift tax equivalent  exemption $5,120,000 $1 Million $1 Million
Federal gift tax annual  exclusion $13,000 $13,000 (plus adjustment for post-1997 inflation) Not Addressed.  Presumably $13,000 plus inflation adjustment
Federal GST tax rate 35% 55% 45%
Federal GST tax exemption $5,120,000 Approx $1.4 Million ($1 Million plus adjustment for post-1997 inflation) $3.5 Million 
Posted in Status of Tax Legislation, WillPlan Blog.

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