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2011 Estate and Gift Tax Update

Posted by Weinstein in Blog, Estate Law, Taxes with Comments Off on 2011 Estate and Gift Tax Update

The Tax Relief Act of 2010, passed by Congress in the waning days of the December, 2010, increased the federal estate tax exemption to $5,000,000. However, an equally significant aspect of the new law is the unification of the federal gift and estate tax exemptions. Both exemptions will now be $5,000,000 in 2011, with an adjustment for inflation thereafter. Thus, clients who utilized their $1,000,000 gift tax exemption in prior years will now be able to make up to $4,000,000 of additional tax-free gifts during 2011 and 2012. It should be noted that the gift tax exemption utilized during a client’s life will reduce the available estate tax exemption available upon death.

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Michael Weinstein - Attorney at Law