2. “2012 TAX ACT” LEGISLATION
CONGRESS AVERTED FISCAL CHAOS
The estate, generation skipping transfer and gift tax
exemptions in the 2010 Tax Relief Act have been
codified as law for 2013. The top rate for estate and
gift taxes was raised from 35% to 40%.
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3. “2012 TAX ACT” LEGISLATION
CURRENT EXCLUSIONS
• 2013 Gift, GST and Estate Tax exclusions will be
$5.25 million (indexed).
• The estate and gift exclusions are portable (but not
the GST exemption), so a surviving spouse may be
able to double these exclusions.
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4. “2012 TAX ACT” LEGISLATION
INCOME TAX RATES ARE INCREASING
Income taxes on high-income earners will increase and
the new Affordable Care Act Medicare taxes will be
imposed. This may represent a significant concern
especially for high-income earners and taxable trusts.
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5. “2012 TAX ACT” LEGISLATION
ESTATE PLANS SHOULD BE UPDATED
Estate plans should be reevaluated and steps taken to
protect assets and reduce income tax burdens, especially
for those with high income and/or large estates.
The focus of estate planning has shifted.
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