Estate and Gift Tax

There have been extensive changes to the estate and generation-skipping transfer taxes, which are quite complex and uncertain as they are currently written into law by Congress. Here are some of the highlights:

• Exemption amount on estate tax will increase from $1,000,000 to $3,500,000 by year 2009 and then be repealed for ONLY one year, which is tax year 2010

• Under the new law, the estate tax would return in year 2011 and have an exemption amount of only $1,000,000 and a maximum tax rate of 55% if Congress does not address this problem

• Exemption amount is $1,000,000 for gifts made beginning in year 2002

• For gifts made in year 2010, the maximum gift tax rate will be 35%

Click here to return to "Economic Growth & Tax Relief Reconciliation Act of 2001"