Senate Passes Estate Tax Reform

According to many news sources, including CNN Money, the proposal the Senate passed and is sending to the House on January 1st includes an estate tax rate increase to 40% from 35%, but keeps the exemption at about $5 million and indexed to rise with inflation. This change would be permanent, so we would not need to look for changes every year.

It is anyone’s guess what the House will do, but this is good news for many of my clients.