A legislation that limits the reach of federal taxes at death was recently apporoved by the House of Representatives. It will permanently spare an estimated 2,800 multimillion-dollar estates.

According to the Bloomberg reports, the legislation will exempt the first $10 million of a couple's estate from any taxation. While estates valued between $10 million and $25 million would be taxed at the capital-gains rate, a value of more than $25 million would be taxed at top rates of 30 percent to 40 percent.

The approved legislation will be in effect in 2011. Senate Majority Leader Bill Frist urged the House to pass the tax-reducing measure after the Senate fell three votes short June 8 on a procedural measure that would have allowed a vote on outright repeal of the estate tax. Unless acted on by Congress, the tax is scheduled to return in 2011, with rates as high as 55 percent on estates valued at more than $1 million.

By M. Sese
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