Federal Estate Tax, Return in 2011

Although the federal estate tax is repealed during the year 2010, EGTRRA contains a "sunset provision" that causes it to return in 2011.

A sunset provision is part of a law that requires the automatic termination of that law on a specific date. The sunset provision that is a part of EGTRRA was used to avoid the "Byrd Rule."

Named for its creator, Sen. Robert Byrd, the Byrd Rule allows the objection of just one U.S. Senator to defeat the passage of any law that will affect revenue for more than ten years. Any such objection may be overridden with the support of 3/5 of the Senate, but it was not believed that 3/5 of the Senate would support EGTRRA when it was proposed.

In order to avoid the Byrd Rule, a sunset provision was included that automatically terminates the law within ten years. By ending within ten years, EGTRRA does not effect revenue for greater than ten years and could not be overridden by just one Senator.

See: Federal Estate Tax, Exclusion Amount; Federal Estate Tax, Generally