Amounts above the current threshold are taxed at rates between 37 and 55 percent. Individuals can limit the taxes that will be owed on their estates when they die by donating some of their assets to charities. The tax has been beneficial to nonprofits and other charities because it allows individuals to limit the amount of taxes they owe on their estates when they die if they transfer some of their assets to charities through bequests or planned-giving arrangements. A measure to repeal the tax was approved by the House in April, but Senate lawmakers have yet to vote on similar legislation. Instead of repealing the tax, some lawmakers and representatives of charities, higher education institutions, and others have called for reforming the tax, by increasing the dollar value of estates that are exempted from it.
Forces pushing for repeal remain considerable with support on both sides of the aisle.
More recently, however, voices in opposition to outright elimination have been heard. President Bush has stated that repealing the tax could help boost the economy as well as help families pass their businesses and farms to their children. While anxiety within the community continues, at present the ultimate outcome is unclear. We are encouraged that proposals to modify rather than repeal the estate tax are being developed and we will pursue these vigorously when they are introduced. In the meantime, we will continue to follow this issue closely and keep you advised.