The failure of Congress to reform or extend the transfer tax law as it existed in 2009 has triggered a one-year repeal of the federal estate tax and the generationskipping transfer tax. If Congressional inaction continues, the estate tax will return next January 1 with an exclusion of only $1 million rather than the 2009 exclusion of $3.5 million, and with a top estate tax bracket of 55% rather than the 2009 rate of 45%. The generation-skipping transfer tax will also return with a reduced exemption and increased rate.
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