Updates for 2012

I've been remiss in not writing very much lately, but I do need to advise everyone that starting January 1, 2012, the federal estate tax exemption is actually going to increase from $5,000,000 to $5,120,000 due to adjustments for the cost of living. The federal estate tax rate remains constant at 35%.

Starting in 2013, unless the government acts:

1. the current estate tax exemption amounts will revert to their 2001 level, adjusted for inflation (probably giving us an exemption amount near $1,300,000);
   
   
2. the estate tax rate will return to a graduated rate, with taxes as high as 55%; and
   
   
3. we will not have portability.

Have a happy holidays and great New Year.