Estate Tax Exemption

The estate tax exemption for 2011 and 2012 will be $5,000,000.  The tax rate on any amount over that is at 35%.  In 2010 there were no estate taxes.  The issues now is beneficiaries receive a step up in basis on assets they receive.  Another issue is the transfer of of the unused portion of one spouse's estate tax exemption to the other spouse.  This transfer is not automatic.  Most estate tax issues are too complex to go into in this blog.  Please call us if you have any questions at 796-1040.