2012 Inflation Adjustments for Estate Tax and Others Announced

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Rev. Proc. 2011-52 was issued setting forth the inflation adjustments required under various sections of the Internal Revenue Code.  A few of the more important adjustments for estate planning are listed in this post.

  • Estate Tax Exemption = $5,120,000 for purposes of the credit under IRC Sec. 2010
  • Annual Gift Tax Exclusion remains the same at $13,000/$26,000
  • Annual Gift Tax Exclusion  for gifts to Non-US Citizen Spouse = $139,000
  • Threshold for possible reporting of Large Gifts from Foreign Persons under IRC Sec. 6039F if = $14,723
  • Income Tax Rate Tables for 2012
  • Standard Deduction (e.g. Married Filing Joint Return and Surviving Spouses = $11,900, Unmarried individuals = $$5950)
  • Personal Exemption = $3,800 (IRC Sec. 151(d))
  • Eligible Long-Term Care Premium limitations regarding eligible  care premiums included in the term “medical care” for purposes of IRC Sec. 213(d)(10)
  • Medical Savings Account and High deductible health plan limits
  • Expatriation limits for IRC Sec. 877A(a)(1)

Click the link above for the complete text of the Rev. Proc.

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