Litigation

The House passed H.R. 4154, which would:

1. permanently freeze the estate tax exemption at $3.5 million,
   
2. the estate tax rate at 45%, and
   
3. preserve the step up in basis
   

The bill passed by a vote of 225-200, with no Republicans voting for it and 26 Democrats opposed.  H.R. 4154 moved with statutory PAYGO however, exempted from the PAYGO requirement is an extension of 2009 rates for the estate tax (what was passed).  

Statutory Pay  As You Go Act of 2009  ("PAYGO")

Note: While structured settlement payments are income tax free, the present value of any structured settlement period certain or guaranteed lump sum payments remaining and due after an annuitant's death is included in the decedent's estate for purposes of calculating estate tax.