Scott G. Hackett

Life Events
Every stage of life has its own financial needs and concerns. The life events on this page can help you target the key financial strategies and issues that are likely to be most important to you in this stage of your life.
Starting Out    Changing Jobs    Coping with Unemployment    Getting Married    Starting a Family    Buying a Home    Saving for College    Starting a Business    Planning for Retirement    Managing College Expenses    Long-Term Care Planning    Planning an Estate    Planning for Business Succession    Nearing Retirement/Retirement    Caring for an Aging Parent    Loss of Spouse    Financial Windfall    Getting Divorced   
 
Table of Federal Transfer Tax Rates and Exemption Limits
Table of Federal Transfer Tax Rates and Exemption Limits

Federal Gift and Estate Tax
YearApplicable Exclusion AmountHighest Tax Rate
2009$1 million for gift tax purposes
$3.5 million for estate tax purposes		45%
2010*$1 million for gift tax purposes
$5 million or $0 for estate tax purposes		35% or 0
2011**$5 million plus DSUEA***35%
2012**$5 million adjusted for inflation plus DSUEA***35%
2013$1 million (?)55% (?)

Federal Generation-Skipping Transfer (GST) Tax
YearExemptionHighest Tax Rate
2009$5 million45%
2010*$5 million0%
2011**$5 million35%
2012**$5 million adjusted for inflation35%
2013$1 million (?)55% (?)

* In 2010, the exemption for gift tax purposes is $1 million, but the exemption for estate tax purposes is $5 million. An estate of a person who died in 2010 can elect out of the estate tax. If it does so, estate property will receive a carryover or modified carryover basis, and not a step up in basis.

** Effective January 1, 2011, each taxpayer will have a $5 million exemption for gifts given either during life or at death. The exemption amount will be indexed for inflation in 2012.

*** In prior years, each taxpayer was entitled to use only the exemption allotted to him or her, and any unused exemption amount would be lost. The Tax Act passed in 2010 allows the executor of the first deceased spouse's estate to transfer any unused exemption amount (DSUEA) to the surviving spouse. This "portability" (which expires in 2013) allows the second spouse to die to dispose of up to $10 million worth of assets, estate tax free.



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 IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.