Estate, Gift, and GST Tax Parameters (thanks to David Lane)
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| 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)
Value |
Date of Death(or AVD)
Value |
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 |