THE ECONOMIC Growth and Tax Relief Reconciliation Act of 2001 (the 2001 Act) has brought about some of the most sweeping changes to the estate, gift, and generation skipping transfer (GST) taxes in recent memory. Perhaps one of the most controversial parts of this legislation is the provision for the repeal of the estate and GST taxes for decedents dying after Dec. 31, 2009. See ��2210(a) and 2664 of the Internal Revenue Code of 1986, as amended (IRC).
Adding to the controversy is �901(a)(2) of the 2001 Act, which provides that all provisions of the 2001 Act will not apply to decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2010. This provision is referred to as the “sunset provision.” Other provisions of the 2001 Act that add to the debate are the increase in the applicable exclusion amount for estate tax purposes from $1 million this year to $3.5 million by 2009 and the retention of the gift tax even after the estate tax is repealed. See IRC ��2010(c) and 2505(a).
