PUBLIC LAW 107-16—JUNE 7, 2001 115 STAT. 71 "If the amount with respect to which the tentative tax to be computed is: Over $40,000 but not over $60,000... Over $60,000 but not over $80,000... Over $80,000 but not over $100,000 Over $100,000 but not over $150,000 Over $150,000 but not over $250,000 Over $250,000 but not over $500,000 Over $500,000 The tentative tax is: $8,200, plus 24% of the excess over $40,000. $13,000, plus 26% of the excess over $60,000. $18,200, plus 28% of the excess over $80,000. $23,800, plus 30% of the excess over $100,000. $38,800, plus 32% of the excess over $150,000. $70,800, plus 34% of the excess over $250,000. $155,800, plus 35% of the excess over $500,000.". (e) TREATMENT OF CERTAIN TRANSFERS IN TRUST. —Section 2511 (relating to transfers in general) is amended by adding at the end the following new subsection: "(c) TREATMENT OF CERTAIN TRANSFERS IN TRUST. —Notwithstanding any other provision of this section and except as provided in regulations, a transfer in trust shall be treated as a taxable gift under section 2503, unless the trust is treated as wholly owned by the donor or the donor's spouse under subpart E of part I of subchapter J of chapter 1.". (f) EFFECTIVE DATES. — (1) SUBSECTIONS (a) AND (b). — The amendments made by subsections (a) and (b) shall apply to estates of decedents dying, and gifts made, after December 31, 2001. (2) SUBSECTION (O. — The amendment made by subsection (c) shall apply to estates of decedents dying, and gifts made, after December 31, 2002. (3) SUBSECTIONS (d) AND (e).— The amendments made by subsections (d) and (e) shall apply to gifts made after December 31, 2009. 26 USC 2511. Applicability. 26 USC 2001 note. 26 USC 2001 note. 26 USC 2502 note. Subtitle C- -Increase in Exemption Amounts SEC. 521. INCREASE IN EXEMPTION EQUIVALENT OF UNIFIED CREDIT, LIFETIME GIFTS EXEMPTION, AND GST EXEMPTION AMOUNTS. (a) IN GENERAL.— Subsection (c) of section 2010 (relating to applicable credit amount) is amended by striking the table and inserting the following new table: In the case of estates of decedents The applicable dying during: exclusion amount is: 2002 and 2003 $1,000,000 2004 and 2005 $1,500,000 2006, 2007, and 2008 $2,000,000 2009 $3,500,000.". (b) LIFETIME GIFT EXEMPTION INCREASED TO $1,000,000. — (1) FOR PERIODS BEFORE ESTATE TAX REPEAL. —Paragraph (1) of section 2505(a) (relating to unified credit against gift tax) is amended by inserting "(determined as if the applicable exclusion amount were $1,000,000)" after "calendar year". (2) FOR PERIODS AFTER ESTATE TAX REPEAL. —Paragraph (1) of section 2505(a) (relating to unified credit against gift
�
