Members of a House and Senate conference negotiating committee have reportedly worked out a compromise resulting in keeping the estate tax at 2009 levels (individuals could exempt $3.5-million from taxes ($7-million for couples), with amounts above that taxed at the present 45 percent rate). This is essentially the House version of the legislation, with the most recent Senate version for inclusion in their budget scenario (as noted in this blog) was for a possible exemption of $5 million per individual and a 35% rate of tax.
This is the result which we have been expecting.
Of particular interest is that it appears possible that the full House and Senate may vote on the budget blueprint soon.
It still appears likely that some additional provisions will be included, such as indexing the exemption for inflation, “portability” (preventing the inadvertent loss of the pre-deceasing spouse’s $3.5 million exemption) and integration of the estate and gift tax exemptions and credits.