JANuary 15, 2001
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 Estate Talk
New Estate and Gift Tax Numbers for 2001

The IRS has released Rev. Proc. 2001-13, showing inflation adjustments to estate and gift tax exemption, exclusion, and limitation amounts for 2001.

Income Tax Tables for Estate and Trusts

Taxable Income
Tax Amount
<=$1,800
15% of Taxable
Income
>$1,800 and
<=$4,250
$270.00 plus 28% of
excess over $1,800.
>$4,250 and
<=$6,500
$956.00 plus 31% of
excess over $4,250
>$6,500 and
<=$8,900
$1,653.50 plus 36%
of excess over $6,500
>$8,900
$2,517.50 plus 39.6% of excess over $8,900

The Unified Credit remains the same at $675,000 for 2001, but is scheduled to increase gradually to $1,000,000 by 2006.

The Generation Skipping Transfer Tax Exemption under §2631 increases by $30,000 to $1,060,000 for 2001.

The Annual Gift Tax Exclusion under §2503 remains $10,000 for 2001. The annual exclusion for transfers to noncitizen spouses under §2523(i)(2) has increased by $3,000 to $106,000.

The ceiling for Special Use Valuation under §2032A for estates of decedents who die in 2001 has increased by $30,000 to $800,000.

Source: Rev. Proc. 2001-13