c. 2013 San Diego Real Estate and Estate Planning Law
Estate Tax Planning 2013 Update
This article describes the estate changes that took place in the Tax Reform Act of 2010 that should give some relief to those concerned about the continued viability of their estate plans and highlight some estate planning opportunities in 2013.
The most important of these changes in 2013 is the reunification of gift and estate taxes. This important change allows a married couple to gift up to $10.5 million ($5.25 M per spouse) to their loved ones tax free in 2013. The estate tax is now 40% of the amount above the unified exemption amount.
This allows the setting up of an irrevocable trust that distributes up to $5.25 million per spouse to grandchildren and take advantage of the GST (Generation Skipping Tax) exemption.