The American Taxpayer Relief Act of 2012 (ATRA), signed by President Obama on January 2, 2013, prevents steep increases in estate, gift and generation-skipping transfer (GST) tax that would have otherwise applied in 2013. ATRA makes the exemption from each of these taxes $5 million, indexed for inflation after 2010 ($5.25M for 2013), and increases the tax rate from 35% to 40%. ATRA also continues to allow “portability” of any unused estate tax exemption from a deceased spouse to his or her surviving spouse. All changes are effective for individuals dying and gifts made after 2012. Finally, the annual gift exclusion is increased to $14,000 for 2013.