The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (better known as the Bush tax cut extension package) establishes a new (but temporary) federal estate and gift tax for 2011 and 2012.
The new law also clarifies the estate tax rules for estates of individuals who died in 2010. See the article titled “Tax Choices for Estates of Those Who Died in 2010.”
Here is a brief summary of what you need to know.
$5 Million Estate Tax Exclusion and 35 Percent Tax Rate
For estates of individuals who die in 2011 or 2012, the federal estate tax exclusion is set at $5 million (the 2012 amount will be indexed for inflation).
The tax rate on estates in excess of the ... Log in to view full article.