Robert Keebler has read the president’s 2013 budget. He reports it seeks to restore the gift and estate tax rates to 2009 rates. The 2009 rates were:
Gift tax exclusion $1M and Estate tax exclusion $3.5M with tax rates of 45%.
If this is a worst case scenario for 2013, then maybe it won’t be too bad. As it now stands, the gift and estate tax exclusions are scheduled to drop from $5M each to $1M each if congress and the president do nothing. A $3.5M estate tax exclusion is much better than a $1M exclusion.