Brief summary of new tax cut extension package

Posted on January 13th, 2011 No Comments

The tax cut extension package that was passed last month made significant changes to laws that pertain to estates and gift taxes. Different demographic groups will be affected in different ways by the new rules.

In summary, the new laws state that:

  • Both the federal estate tax exemption and the federal gift tax exemption rates for 2011 and 2012 are now set at $5 million
  • If an estate or gift surpasses the $5 million exemption, a flat tax rate of 35 percent is applied to the excess

Last year, the gift tax exemption was $1 million. For now, these new laws will be in place over the next two years, but may change in 2013.

If you or a loved one needs legal assistance planning an estate, contact the Houston estate planning attorneys at Garg & Associates, P.C. by calling 281-362-2865.

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Garg & Associates, PC | 21 Waterway Avenue, Suite 300 | The Woodlands, Texas 77380 Please call 281-362-2865 | Fax: 866-743-4506
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