To amend the Internal Revenue Code of 1986 to limit the applicability of the estate tax to estates of over $3,500,000, and for other purposes.

Amends the Economic Growth and Tax Relief Reconciliation Act of 2001 to repeal subtitles A (Repeal of Estate and Generation-Skipping Transfer Taxes) and E (Carryover Basis at Death; Other Changes Taking Effect With Repeal) of title V (Estate, Gift, and Generation-Skipping Transfer Tax Provisions. Repeals the sunset provisions applicable to the remaining provisions of title V.

Increases the unified tax credit amount for years before 2009. Modifies provisions concerning phaseout of graduated rates and unified credit.

Sets valuation rules for certain transfers of "nonbusiness assets," or assets not used in the active conduct of one or more trades or businesses. Sets forth criteria under which certain "passive assets" shall not be treated as used in the active conduct of business and defines "passive assets."

Specifies a limitation on minority discounts.