While income tax rates and spending issues received all the attention, the estate tax was also a big pasrt of the last minute "fiscal cliff" negotiations! In 2012, the exemption amount as $5.12 million and the rate 35%. If Congress did not act, the exemption would fall back to $1 million and the rate rise to 55%!!
Fortunately, at this this time, Congress did something right! Deborah Jacobs of Forbes.com explains: