Here we go...by a vote of 81 to 19, the Senate voted today to lower the federal estate tax rate to 35 percent and to raise the applicable exemption to $5 million per person.
Now on to the house where Democratic leaders are debating among themselves on how to handle the estate tax. Many of such leaders say it should be 45 percent on estates worth more than $3.5 million. This could be their "bone," as discussed in yesterday's posting.
See: http://www.foxnews.com/politics/2010/12/15/tax-passes-senate-hits-hurdle-house/; http://www.smartmoney.com/personal-finance/taxes/tax-package-includes-favorable-estate-tax-changes-1292368597065/; and http://money.cnn.com/2010/12/15/news/economy/tax_deal_what_is_in_bill/.
--Attorney David M. Grant