Estate Tax Legislation or Not

As I write this, Senate Democrats have made a reconciliation proposal.  Word is that not all Senate Democrats are on board yet, but this is their one shot and I expect something will get done.  My contacts in DC think that reduction in the exemption will be part of the bill, but don’t know if the exemption will be reduced to $3.5 million or an inflation adjusted $5 million.  Word is that action on grantor trusts, the 50 year limit on dynastic trusts and retroactive elimination of BDITs and BDOTs will not be part of the bill.  We will know soon enough.  However, if you have an estate that will be impacted by these changes, time to act is running out.