New Tax Deal Lowers Estate Tax and Extends IRA Charity Break

Congress has approved a new tax deal that would lower estate-tax rates from 2009 levels and extend a benefit for older donors who tap their individual retirement accounts to make charitable donations.

The legislation sets estate-tax rates at 35 percent and establishes exemptions that would allow couples to pass estates as large as $10-million to their heirs tax-free. Individuals could pass on the first $5-million tax-free.