• Client Alert Topic: Trust & Estates
  • February 3, 2012 | Authors: Mark B. Balian; Grace C. Bertone
  • Law Firm: Bertone Piccini LLP - Hasbrouck Heights Office
  • The federal gift and estate exclusion for 2012 has increased from $5,000,000 in 2011 to $5,120,000 as an inflation-adjustment. This provides taxpayers with a temporary increase in the lifetime gift, estate, and generation-skipping transfer ("GST") tax exclusion amount while the tax rate remains the same at 35%. Under the current law, an individual can transfer $5,120,000 in assets either during their life or at death free of estate and gift tax liability. Married couples can aggregate this exclusion amount up to a $10,240,000 tax free exclusion. However, the benefit of this exclusion is set to expire by the end of this year.