Proponents of estate tax repeal were 3 votes short of forcing a vote on full and “permanent” repeal of the estate tax last week. The vote broke down almost entirely on party lines with the exception of 2 Republicans who voted against a repeal vote and 4 Democrats who voted in favor.
While some Senators hold out hope for a compromise bill that would allow individuals to pass on more than $1 million after 2010, the Los Angeles Times reports that “striking a deal will be difficult in an election year.”
We continue to plan our client’s estates to preserve maximum flexibility in the face of current law, which is that the estate tax will be repealed for one year — 2010 — and then return to 55% tax on any amount over $1 million.