The American Taxpayer Relief Act of 2013 increased the top estate tax rate from 35% in 2012 to 40%.   The estate exemption was set at $5,000,000 for individuals and $10,000,000 for  married couples.  The exemption amount will be adjusted annually for inflation.  This change is permanent.

The American Taxpayer Relief Act also provides for “portability” of a spouse’s unused exemption amount.   The annual exclusion for gifts increased to $14,000 (up from $13,000 in 2012).

To find out how this will directly affect you, contact us at 559.924.1225.

For “Frequently Asked Questions” regarding Estate Taxes, check out this page on the IRS website.