When Congress passed and President Barack Obama signed into law the American Taxpayer Relief Act in the first week of January — averting the so-called fiscal cliff — it made permanent the previous two years’ exclusions on estate and gift taxes. And those exclusions have been adjusted for inflation.
As reported by Bloomberg, this means that taxpayers will be able to leave an extra $130,000 to their heirs free of estate taxes this year under cost-of-living adjustments announced by the Internal Revenue Service (http://tinyurl.com/cgh27ch). The estate-tax exemption for 2013 will be $5.25 million for individuals, up from $5.12 million in 2012, the IRS said. For married couples, the combined threshold is $10.5 million.