Estate Tax, Part 3

The Senate is considering bills to change the estate tax. One bill would keep the 45% rate and the $3.5 million exemption, but would index the exemption to inflation each year.

Another bill being considered would raise the exemption to $5 million and lower the maximum tax rate to 35%.

Another thing they might do is just extend the 2009 provisions for one year, 2010, and then address the issue anew after the healthcare debate is over.