The exemption amount is the point at which one is required to file, so even if you have deductions and expenses that will take an estate below the credit amount, a return will still have to be filed.

One spouse can leave all of his or her estate to the other spouse, completely estate-tax free.  When the second spouse dies, however, that's when the chickens can come home to roost; without good estate-planning, this can come with a hefty tax bill.

If I'm smart, my Will creates a residuary trust (sometimes known as a "By-Pass" or "Credit Shelter" trust) equal to the exemption amount, that will provide income (and discretionary payments of principal) to my spouse for life, and after my spouse's death, will continue on for the benefit of my descendants; this keeps the trust out of my spouse's estate when he dies, and still allows my spouse to leave, tax free, the exemption amount of his estate to descendants - or whomever.  Potentially, this has the effect of sheltering much more than the straight credit/exemption, and is a tool that people will use regardless of whether the exemption amount is $1 million or $3.5 million.  

It is no doubt because I have been doing this for a long time that I no longer look at a $675K or $1MM estate as being "big;" I'm working on several estates now that are each in excess of $10MM - one will have a significant tax bill that will take about 50% of the estate - that's a big tax bill!

Notably, the measure does not address the estate tax, a legislative priority for many Republicans. But according to Baucus and Grassley, the negotiators agreed not to put off the issue much longer.

Reid is trying to schedule a jobs bill vote the week of Feb 22nd.