2012 Estate and Gift Tax Exemption Increases

While the future of the gift tax and estate tax remains in the hands of Congress, we have some certainty for 2012. The Unified Credit Exclusion amount for gift and estate taxes is indexed to inflation and is set at $5.120,000 for the year 2012. The top gift and estate tax rate remains at 35%. Other inflation adjusted numbers have changed including the personal exemption ($3,800) and the standard deduction. More information can be found at Revenue Procedure 2011-52.