Applicable exclusion

In 2011 and 2012: $5,000,000

New “portability” rules allow an executor to elect to transfer any unused exclusion to a surviving spouse. Determining how to apply the portability rules is complex. Consult your tax and legal advisors to determine the appropriate strategy.

Estate tax rate

In 2011 and 2012: 35% for any amount exceeding $5,000,000

Generation-skipping tax exemption

In 2011 and 2012: $5,000,000

* These provisions “sunset” after 2012 unless further legislation is enacted. 

Gift tax annual exclusion

Each individual may transfer up to $13,000 per person per year to any number of beneficiaries (family or nonfamily) without paying gift tax or “using up” any available lifetime gift exclusion.

Source: Wells Fargo Advisors 2011