It is being reported that Democrats on the House Ways and Means Committee are proposing a one-year extension of the existing Federal Estate Tax levels, which would result in a $3.5 million per person exemption in 2010, rather than a one-year repeal of the Federal Estate Tax that is currently scheduled to take effect come January 1.
The plan is to apparently put the stop-gap extension in place during 2010 while a more significant tax code overhaul -- including a more permanent solution to the estate tax issue -- is taken-up by Congress. It is expected that the estate tax extension bill will be brought to the floor of the House after Thanksgiving.
Most estate planning practitioners had anticipated that 2009 would have seen a significant tax code revision including modification (but not repeal) of the existing estate tax legislation, but the health care reform debate has put this issue on the back-burner.
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