Number: RL32818
Title: Estate Tax Legislation in the 109th Congress
Authors: Nonna A. Noto, Government and Finance Division 
Abstract: Under provisions of Title V of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA, pronounced egg-tra, P.L. 107-16), the applicable exclusion amount under the estate tax will continue to increase from $2 million for decedents who die in 2006 through 2008, to $3.5 million in 2009. The maximum estate tax rate will continue to fall from 46% for decedents who died in 2006, to 45% for 2007 through 2009. Effective January 1, 2010, the estate tax and generation-skipping transfer (GST) tax are scheduled to be repealed. The gift tax is to remain in place with a cumulative lifetime exclusion amount of $1 million and with a maximum marginal tax rate of 35% (equal to the highest rate for the individual income tax in 2006 and thereafter under EGTRRA). However, the estate tax repeal, and all other provisions of EGTRRA, are scheduled to sunset at the end of 2010. Title IX or Section 901 of EGTRRA states that the provisions of the act do not apply after December 31, 2010.
Pages: 38
Date: March 29, 2007