Sponsors (184)
The bill eliminates federal estate and GST taxes and clarifies a $10M indexed gift-tax base, easing lifetime and intergenerational wealth transfers for wealthy households while reducing federal revenue, risking greater wealth concentration, and adding short-term administrative complexity.
High-net-worth individuals, families, and small-business owners can transfer estates and large gifts after enactment without owing the federal estate tax or generation-skipping transfer (GST) tax, simplifying estate planning and reducing compliance costs.
Taxpayers have a clear, predictable lifetime gift-tax base ($10,000,000 indexed for inflation), making lifetime gifting decisions and tax planning more certain.
All taxpayers could face higher deficits, reduced federal services, or future tax increases because repealing the estate and GST taxes cuts federal revenue previously collected from large estates and transfers.
Heirs of wealthy decedents are likely to accumulate more inherited wealth without estate/GST taxes, increasing wealth concentration and potentially worsening economic inequality over time.
Taxpayers and tax administrators will face transitional complexity and higher compliance risk because the enactment year is treated as two taxable periods and cross-references change, increasing the chance of errors and administrative burden.
Based on analysis of 2 sections of legislative text.
Repeals the federal estate and GST taxes for events on or after enactment and creates a $10,000,000 indexed lifetime gift-tax base.
Official title: To amend the Internal Revenue Code of 1986 to repeal the estate and generation-skipping transfer taxes.
Introduced February 13, 2025 by Randy Feenstra · Last progress February 13, 2025
Repeals the federal estate tax and the generation-skipping transfer (GST) tax for events on or after enactment, and changes gift-tax rules by creating a $10,000,000 lifetime gift-tax base (indexed for inflation after 2011). It makes conforming amendments to related Internal Revenue Code provisions, provides transition rules for computations in the year of enactment, and narrow transitional relief for certain qualified domestic trust (QDOT) distributions for decedents who die before enactment. All changes apply to estates, GST transfers, and gifts occurring on or after the date the law takes effect.