2012 Estate Tax, Gift Tax and Generation Skipping Transfer Tax Exemption Changes

Last week the IRS released Rev. Proc. 2011-52 which, among other things, announced that the federal estate tax exemption will increase from $5,000,000 to $5,120,000 for the estates of decedents who die in 2012. This also means that both the lifetime gift tax exemption and generation skipping transfer tax exemption will increase from $5,000,000 to $5,120,000 in 2012.

For past, current and future estate tax, gift tax and generation skipping transfer tax exemptions and rates, refer to the following charts:

• Exemption From Federal Estate Taxes: 1916 - 1997
• Exemption From Federal Estate Taxes: 1997 - 2013
• Lifetime Exemption From Federal Gift Taxes: 1997 - 2013
• Exemption From Federal Generation Skipping Transfer Taxes: 1997 - 2013
• Annual Exclusion From Gift Taxes: 1997 - 2012