On January 2, 2013, the American Taxpayer Relief Act ("ATRA" for short) became law. Now that the dust has settled, here is a quick summary of the changes that ATRA has made to federal estate taxes, gift taxes and generation skipping transfer taxes for the 2013 tax year:
- 2013 federal estate tax exemption = $5.25 million, indexed for inflation in future years; top tax rate = 40%
- 2013 federal lifetime gift tax exemption = $5.25 million, indexed for inflation in future years; top tax rate = 40%
- 2013 generation skipping transfer tax exemption = $5.25 million, indexed for inflation in later years; top tax rate = 40%
- Portability of the estate tax exemption between married couples has been made permanent for 2013 and future years
For a detailed summary of the changes made by ATRA, refer to New Estate Tax and Income Tax Laws for 2013.
For a detailed summary of the estate tax, gift tax and generation skipping transfer tax laws that were in effect in 2012, refer to Overview of 2011 and 2012 Estate Tax and Gift Tax Laws.
For information regarding state estate taxes and inheritance taxes, refer to my State Estate Tax and Exemption Chart and State Inheritance Tax Chart.
For information regarding historical estate tax, gift tax and generation skipping transfer tax exemptions and rates, refer to the following:
- 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
Refer to Rev. Proc. 2013-15 for additional information about the inflation-adjusted exemptions.