They may get their wish. A major overhaul appears likely, and it might even include eventual elimination of estate and gift taxes for all but the heirs of multimillionaires and billionaires. Still, despite the heated political rhetoric, total repeal isn't likely to happen soon. Even if President Bush's entire plan were enacted overnight, estate and gift taxes likely wouldn't disappear for as much as a decade. As the idea of total repeal has run into heavy fire, several possible compromises have attracted growing attention.
Some lawmakers also favor rate cuts as well as changing other provisions affecting tax-free gifts.
At first glance, it may seem remarkable that this issue has become so hot since it directly affects relatively few people. Hilker points out that the most affluent Americans can easily afford to take many steps to reduce the size of their taxable estates, such as making large gifts to charities and family members. People with much smaller estates often are afraid to part with sizable amounts of money for fear they may need it at some later date, such as for medical bills. As a result, any changes could have wide-ranging ramifications. Here are some of the possible scenarios.