Latest Estate Tax Rates--2011
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (2010 Tax Relief Act) allows the estate for decedents dying after December 31, 2009 to choose whether to use the prior 2010 rules or the new rules.
Old Rules - No estate tax, $1.3 million of assets eligible for carryover basis
New Rules - 35% estate tax, $5 million exclusion with carryover basis
Note that this is for federal tax only. Many states, such as New York, have estate tax. These
tax rates were not affected by the 2010 Tax Relief Act.
Latest Gift Tax Rates--2011
The gift tax is still applicable for gifts made during 2010. The 2010 Tax Relief Act does not change the applicable exclusion amount or the maximum tax rate for gifts made in 2010. The applicable exclusion amount for gifts made in 2010 is retained at $1 million and the maximum tax rate remains the same at 35 percent. Furthermore, the 2010 Tax Relief Act repeals IRC section 2511(c), which was applicable only for 2010 gifts
Expected 2012 Tax Rates
The estate tax exemption for 2012 will be $5.12 million and the rate 35%.
