Commerce Clearing House prepared a summary of the recent federal estate tax bill passed by the House of Representatives on December 3, 2009.  The bill is called the Permanent Estate Tax Relief for Families, Farmers, and Small Business Act of 2009.  CCH has issued a Special Tax Briefing on the House bill's provisions which, if adopted by the Senate, will provide certainty for estate taxes and estate planning, largely by freezing the status quo as of this year.   The bill provides:

• $3.5 million estate tax exclusion amount
• Top estate tax and gift tax rate of 45 percent
• Not indexed for inflation
• No portability of spouse’s unused exclusion
• Continuation of stepped-up basis
• Permanent repeal of state death tax credit