Federal estate tax deadline looms

When Congress passed the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), many championed the "repeal" of the federal estate tax. What wasn't widely advertised at the time was that the repeal was for a single year. That single year of repeal begins in 10 days.

Under the terms of EGTRRA, the federal estate tax exemption amount increased from $675,000 in 2001 to $3.5 million in the current year, 2009. As the exemption amount increased, the top federal estate tax rate decreased. In 2010, for one year, there is a repeal. If no further action is taken, the federal estate tax will "sunset" to its original provisions beginning in 2011.