Estate Tax Extended

On December 3, 2009, the U. S. House of Representatives passed a bill to extend the federal estate tax into 2010. Previously, the federal estate tax had been scheduled to be eliminated in 2010 and be replaced with capital gains taxes. Although the bill has not yet cleared the U. S. Senate, in light of existing budget deficits, it is likely to pass there as well, paving the way for a permanent federal estate tax with an exemption of $3,500,000 per U. S. citizen or resident, and a maximum tax rate of 45%.