WASHINGTON — Next year had been shaping up as a great year to get a big inheritanceno federal taxes on it. Congress, however, has other plans for the few wealthy heirs expecting a big boon. Uncle Sam may take a 45 percent cut after all.
Under current law, the federal estate tax is scheduled to temporarily disappear next year before returning in 2011 at a higher rate. But the House is expected to vote as early as Thursday on a bill that would permanently extend the current top rate of 45 percent on estates larger than $3.5 million.
Estates smaller than $3.5 million would continue to be exempt from the tax, and married couples, with a little estate planning, could exempt $7 million from the tax. That leaves less than 1 percent of all estates subject to the tax this year.
The Senate is considering similar legislation, though senators are busy trying to overhaul health care, meaning they will probably have to scramble to address the estate tax by the end of the year. The Associated Press
