Last week the House of Representatives approved a compromise bill that would change estate taxes but not permanently repeal them. The bill, H.R. 5638 passed on a vote of 269-156.

Major components of the bill include:

* Exempt the first $5 million of an estate per person or $10 million per couple from estate taxes.  This means all estates under $5 million for a single person, or $10 million for a couple would not pay estate taxes.

  • Set the capital gains tax rate on estates up to $25 million at 15 percent.
  • Set the capital gains tax rate on estates larger than $25 million at 30 percent.

The changes would basically eliminate estate-tax concerns for about 99.7 percent of all families.

The Senate is expected to vote on a similar compromise bill before the July 4 holiday.

For more details from the New York Times, go to: http://www.nytimes.com/2006/06/23/business/23estate.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1151334603-WdUYOJtTZALpU75p93Llqg

New York Times