Under Bush-era tax legislation enacted in 2001, the federal estate tax was due to disappear entirely at the stroke of midnight on January 1, 2010.
That won’t be happening now.
Senate and House budget negotiators reached agreement earlier this week on a budget resolution for fiscal year 2010. A press release issued by the Senate Budget Committee states: “[The budget resolution] matches the President’s estate tax reform proposal, which would permanently extend the 2009 level of a $7 million exemption for couples and $3.5 million for individuals. (Emphasis added)
Note: Although the negotiators have reached agreement, the resolution must still be voted on by both the full House and full Senate. However, with clear Democratic majorities in both chambers, the resolution is expected to pass easily.