The Gift tax exemption increases to $1 million for 2002 but does not adjust higher in future years.
	The Gift tax rates are reduced along with estate tax rates through 2009.
	However, beginning in 2010, the top gift tax rate will equal the highest income tax rate of 35%.
	The $1 million dollar exemption was retained to prevent income-shifting from one generation to the next.
	Keep in mind the $1 million is still part of the Exemption Equivalent.  If you’re gifting $1 million during your lifetime it is applied against your Exemption Equivalent in the year of death.
	The Annual Gift Exclusion remains at $10,000 per year.
	This provision is also subject to “sunset” in 2011