Tax Relief Act of 1997

Estate and Gift Taxes

• Increase in the unified credit phased up to $1,000,000 by 2006

• Exclusion for family owned businesses and farms of $675,000 (total with unified credit is $1.3 million)

• Index for following items:

• $10,000 annual exclusion

• $750,000 special use valuation

• $1 million generation-skipping tax

• $1 million in property value eligible for special interest rate on installment payment of estate tax.

• No gift revaluation for estate tax purposes after expiration of the statute of limitations

• Repeal of throwback rules

• Expansion of exception from generation-skipping transfer tax to collateral errors

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