Estate Tax Exclusion Extended
It appears that the fiscal cliff has been avoided and that has included the Estate Tax Exclusion to be left at the $5 Million, indexed at inflation, so it should be something more than the the $5.12 Million set in 2012. The top estate and gift tax rate was increased to 40% though. Information about the new law is coming in as it is being analyzed. Further, the Bush tax cuts were continued for individuals earning $400,000 or couples earning $450,000. I have not heard reports as to whether the law is permanent or set for several years, like the prior law. Also, we are still waiting to hear if the income cap for additional 3.8% tax for the health care law is still $250,000 or the $400,000/$450,000 applicable to the extension of the Bush tax cuts.