Post Fiscal Cliff Recap

I'm not going to say I told you so, but I told you so.

Estate and Gift tax wise, we have the same thing as we had before: ~$5 Million exemption amount for estate and gift, portability between spouses, only wrinkle is it is 40% beyond that (up from 35%).

Yes, taxes went up. Yes, payroll tax cut went away. Yes, medicaid/care related taxes went up. This is all bad, but at least you won't have to worry about getting taxed on giving your money away.

The real takeaway is that to preserve your portability between spouses, you will now have to fill an estate tax return, even if you don't owe anything, 9 months after the death of the decedent spouse. This little piece of paper will save you a potential $5 million in exemption, so don't forget to bring it up with your attorney.

Else, its business as usual, except we are all going to take home less money. On to the next debt ceiling debate, and hopefully some serious talks about cutting the deficit and reducing the budget/spending.

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