• In January 2013, the American Taxpayer Relief Act of 2012 was signed into law, making the $5 million estate tax exclusion (the amount that you can pass on at death without owing estate taxes) permanent, as enacted in 2010. Additionally, the Act set the top tax rate at 40%, made portability permanent, and indexes the exemption for inflation annually.

    In addition to estate tax, the exemption levels for the lifetime gift tax exemption and the generation skipping transfer exemption were made permanent at $5 million. In order to take advantage of the gift tax exemption, most strategies require that you give the assets away, either outright or via a trust that is irrevocable and without a retained interest. However, our firm, in conjunction with attorneys and advisors has two strategies available that allow access to funds while removing the assets from your taxable estate.