2012 Exemption Announced
The IRS announced today that the Estate Tax Exemption will increase next year. According to IR-2011-104, which also lists income tax benefit increases - exemptions, standard deductions, tax brackets, etc.:"For an estate of any decedent dying during calendar year 2012, the basic exclusion from estate tax amount is $5,120,000, up from $5,000,000 for calendar year 2011. Also, if the executor chooses to use the special use valuation method for qualified real property, the aggregate decrease in the value of the property resulting from the choice cannot exceed $1,040,000, up from $1,020,000 for 2011.The annual exclusion for gifts remains at $13,000."