At the end of last year a tax agreement was reached that allowed for an estate tax exemption to rise to $5 million from $3.5m it had been in 2009. It also raised the gift tax exemption to $5m and lowered the tax rate to just 35% as well as allowed portability of the estate tax exemption for those who died in 2011 or 2012 and were married but did not use up their exemption or provide for tax planning. If no further action were taken in 2013 the tax rate would revert back to just $1m and and 55% rate.
See my My Fox Boston
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