Estate Tax Coalition

Mark Sonderen, President of Sonderen Packaging in Spokane, Washington, inherited his business, which now employs 148 worker…

  • A maximum estate tax rate is 40 percent, effective January 1, 2013. While this is an increase from 2012’s 35 percent, it is sharply lower than the 55 percent rate that could have taken effect absent the legislation.  

  • The law permanently maintains the $5 million exemption amount, indexed to inflation. As of 2016, the inflation adjust amount is $5.45 million.

  • Unification:  The estate and gift taxes are permanently unified. This establishes a single graduated rate schedule for both the estate and gift taxes, simplifying estate planning.  

  • Spousal portability:  The law permanently allows couples to transfer any unused exemption to the surviving spouse under simplified rules.   

  • No harmful offsets—preserves valuation discounts, grantor-retained annuity trusts (GRATs) and state estate tax deductibility. 

In The Spotlight:

Key provisions of current law include:

The Katz family has operated Denver Hardware in Denver, Colorado, for almost 70 years, employing 25 local workers...

Treasury's regulations can prove harmful for

family-owned businesses.

Impact on Family Business

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The Barnard Family

The Sonderen Family

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The Kerckhoff Family

James Barnard, the owner of Barnard Manufacturing Co., in St. Johns, Michigan, employs over 100 workers and was almost…

The Katz Family

Latest News:

Family Business Estate Tax Coalition files comments on proposed estate tax regulations.

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The Kerckhoff family, owners of Rudroff Heating and A/C Inc. in Belton, Missouri, demonstrate what our members go through to prepare…