Under the 2012 Tax Law, the Federal Estate Tax Exemption remains high for 2013. For 2013, the Federal Estate Tax is not due until the total value of the Estate is over $5.25 million. Last year the number was $5.12 million, but has gone up with the Cost of Living Inflation Index.
The top Estate Tax Rate went from 35% to 40%.
The Gift Tax Exemption went to $14,000 per year, per person for 2013.
Under North Carolina law, currently, there is NOT a North Carolina Estate Tax or Inheritance Tax unless the Federal Estate Tax has been triggered. However, since Federal Estate Taxes have “decoupled”, 23 states have put in a $1 million Exemption. That means that 23 states have created their own Estate Taxes or Inheritance Tax on assets above $1 million. This is a likely scenario and that may continue to be implemented by other states. We will keep our eyes open to see if North Carolina takes similar actions.
President Obama ran for office in 2008, stating that he would have the Estate Tax Exemption at $3.5 million and many believe that it will end up back down at that range sometime in the future,
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.