Bye-Bye to Bypass Trusts?

When last heard from, Senate Republicans said it was estate tax repeal or nothing. Nothing is what they got. Now signs of flexibility are emerging.

This Washington Post story reports that House Ways and Means Committee Chairman Bill Thomas, at the request of Senate Republican leader Bill Frist, has introduced a bill that would raise the estate tax exemption to $5 million. If a married person died without using all or part of his or her exemption, the surviving spouse could claim the unused exemption along with his or her own exemption.

Does this mean bypass trusts will be history?