The Act, which reformed the estate, gift and generation skipping tax provisions, increases in stages the allowable exclusion amount for U.S. citizens and U.S. residents. Although the law repeals the estate tax for deaths occurring in the year 2010, the tax will spring back after that year unless Congress enacts legislation to either make the repeal permanent. Also, note that the gift tax exclusion will remain at $1 million, even as the estate tax exclusion increases.

The allowable exclusion amounts for the next 10 years are indicated below:

Year of Death	Exemption Amount
2001	$ 675,000
2002	$1,000,000
2003	$1,000,000
2004	$1,500,000
2005	$1,500,000
2006	$2,000,000
2007	$2,000,000
2008	$2,000,000
2009	$3,500,000
2010	REPEALED
2011	$1,000,000