Estate Tax Repeal or Revision has been scheduled to be discussed by the US Senate on May 4, 2006.
The Current exemption amount is $2 million per taxpayer until 2009 when it will become $3.5 million and then be repealed for one year in 2010 prior to returning to the 2001 level of $1 million per tax payer under current law.
The House has already approved permanent repeal. It is doubtful with all the hurricane and war expenses that the tax will be repealed but will likely be amended to provide for a higher exemption amount and possibly a lower rate of tax.
Since Florida has no state estate or inheritance tax this could allow more residents to avoid paying any estate taxes and allow the beneficiaries to receive their full inheritance without losing large portions to the government.
Florida-Probate.blogs.com estimates there will not be repeal but there will be modification and it will be in the range of $3.5 million to $4 million adjusted for inflation and possibly a lower tax rate in the range of 30%. The debate in the senate will begin May 4.