Finally Legislation! Congress Kicks the Can Down the Road

Unless you have been living under a rock, you know by now that Congress enacted legislation in December 2010 that avoided the reversion of the estate and gift taxes to pre-2001 levels. The legislation contained some unexpected gifts: a $5 million exemption level and 35% rate, along with reunification of the estate and gift tax and portability of the unified credit. It was also booby trapped: None of the Act's provisions are permanent; Congress merely kicked the can down the road by moving the EGTRRA sunset provisions from 12/31/2010 to 12/31/2012.