With the passing of the 2012 American Taxpayer Relief Act came a few significant changes to the nation’s estate tax regulations. Here is one major amendment to federal estate law:
Exclusion from estate tax will now be permanently maintained at a level of $5 million. Upon death, an individual can transfer any amount less than $5 million without paying the estate tax. This amount is to be adjusted for inflation each year, starting with 2012. In the event of a couple’s demise, the untaxed amount can be doubled for a couple if filing requirements meet first-to-die. As of 2013, this amount has been adjusted to $5,250,000.
Look for other changes in this blog in the coming months.