On Monday, the Obama Administration released its Fiscal Year 2013 budget and for the third consecutive year, the proposal contains tax and reporting provisions that would impact life insurers, owners of COLI policies, and estate and gift planning. Regarding the latter, the budget proposes to permanently set a top rate of 45% with estate tax and GST exemptions of $3.5 million and a gift tax exemption of $1 million. Unified estate and gift tax credits would therefore not be maintained, but the portability of unused credit would be made permanent.
Albert E. Gibbons
AEG Financial Services