Earlier this week, the IRS announced
a number of inflation adjustments for 2012, including an increase in the estate tax exclusion to $5,120,000, up from an even $5 million in 2011.
Of course, current law sunsets on December 31, 2012, and unless Congress enacts a change, the exclusion reverts to $1 million on January 1, 2013. Which could mean we are destined for a repeat of the political maneuvering that took place in late 2010 which resulted in the current two-year estate tax environment.
What are estate planners doing to deal with the uncertainty in the estate tax law?
One thing that is certain: the gift tax annual exclusion for 2012 remains unchanged at $13,000 per person.