“Federal Estate, Gift and GST Taxes Temporarily Repealed in 2010”
In 2001, Congress passed sweeping tax legislation that modified theestate, gift and generation-skipping transfer (“GST”) tax regimes. Aswe reported in June 2001, the 2001 tax law repealed the estate and GSTtaxes effective January 1, 2010, but only for one year. Manypractitioners, ourselves included, anticipated that before the end of2009 Congress would enact permanent estate tax legislation or at leasttemporary legislation maintaining the status quo ($3,500,000 exemptionand a 45% tax rate). In fact, we reported on one such proposal inMarch 2009 and on another proposal in April 2009. To our surprise,Congress has failed to enact legislation addressing the one year ofestate and GST tax repeal in 2010. As a result, if there is nolegislation before the end of 2009, the Federal estate and GST taxeswill be temporarily repealed effective January 1, 2010.
This Stroock Special Bulletin reviews the upcoming repeal and the potential for retroactive reinstatement of these taxes.