Tax Law Highlights - 2012

New for 2011 and 2012 is a concept named portability which allows a surviving spouse's estate to use any portion of the exemption amount not used by the other spouse’s estate. For decedents and gifts made in 2011, a unified credit of $1,730,800 is allowed which is the equivalent of a $5 million dollar exemption is subtracted from the tax calculated on the taxable estate. For 2012 the $5 Million exemption may be increased for inflation.