Last year, many New Yorkers were worried about the uncertainty surrounding the 2011 estate tax until Barack Obama’s administration finally decided on the terms for the reinstatement of the tax. It will return a higher exemption level during the next two years than before, allowing for an exemption of $5 million for individuals and $10 million for couples with a lower tax rate of 35 percent.
Fortune writes that many people have failed to notice the advantages the wealthy have under this year’s estate tax as well. Similar to the estate tax, gift-tax exemptions were increased to $5 million instead of $1 million per person and $10 million from $2 million for couples. Anything above the amount provided for each person or couple will be taxed at 35 percent.