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Is it true that the 2001 tax law reduced estate taxes?
The Economic Growth and Tax Relief and Reconciliation Act of 2001 (EGTRR 2001) cut estate taxes by raising the amount of an individual’s estate that is exempt from taxes. The law has raised the exemption to $2 million for 2008. It will rise to $3.5 million for 2009. Then, the estate tax will be repealed. Unless Congress acts, however, the estate tax comes back in 2011.
The estate tax rate is also being lowered each year until 2010 at which time gifts will be taxed at 35%.Return to Questions
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