Sellers of property over a million dollars should be aware of changes to the Estate-Tax Exemption in 2013.

The Federal Estate-tax Exclusion amount for estates of property owners who die in 2013 increased to $5,250,000 in 2013, up from $5,120,000 in 2012, as per the Internal Revenue Service.

The federal estate-tax exclusion is now permanently set at $5 million and will be indexed for inflation. Due to inflation, however, the amount for 2013 works out to $5,250,000.

The federal gift and generation-skipping transfer tax exemption continues to be the same as the estate-tax exclusion amount. The top federal estate-tax rate on the largest estates is now 40%, up from 35% in 2012. Transfers from one spouse to the other generally and typically tax-free. Under the new law, portability also became permanent.

Portability effectively makes the federal estate-tax exclusion amount “portable” between a husband and wife. When one spouse dies, the other typically can get the deceased spouse’s unused exemption amount without having to set up trusts or other tax-saving maneuvers.

Even if your estate falls below the federal threshold, don’t automatically ignore the subject. With increasing federal estate-tax exclusions, there is an increased focus on state estate taxes, in all states that impose an estate tax.

As both a Real Estate Lawyer and Accountant, Jacqueline A. Salcines, Esq. is equipped to assist you with all your real estate needs. Contact us for legal and tax advice, sound guidance and peace of mind. Located in Coral Gables. 305|669|5280