Sponsors (184)
The bill eliminates federal estate and GST taxes and clarifies a lifetime gift exemption, benefiting wealthy families and simplifying planning but reducing federal revenue, risking greater wealth concentration, and creating transitional compliance complexity.
High-net-worth individuals, families, and owners of closely held businesses will no longer owe federal estate or generation-skipping transfer (GST) taxes on transfers after enactment, allowing tax-free wealth transfers, simplifying estate planning, and reducing tax compliance costs.
Taxpayers who make lifetime gifts gain a clear, predictable $10,000,000 lifetime gift-tax exemption (indexed for inflation), improving certainty for gifting and succession planning.
All taxpayers: repealing the estate and GST taxes will reduce federal revenue, which could increase the federal deficit or force cuts to public services or offsetting tax increases that affect other taxpayers.
Heirs of wealthy decedents and high-wealth households will face lower taxes on transfers, likely increasing wealth concentration and worsening economic inequality.
Taxpayers and tax administrators will face transitional complexity (treating the enactment year as two taxable periods and changing cross-references), increasing compliance burden, administrative costs, and the risk of errors.
Based on analysis of 2 sections of legislative text.
Repeals the federal estate and GST taxes for events on or after enactment, creates a $10,000,000 lifetime gift-tax base (COLA after 2011), and makes related gift-tax changes.
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 to create a $10,000,000 lifetime gift-tax base (adjusted for inflation after 2011). It includes transition rules for computations in the calendar year of enactment and limited exceptions for certain qualified domestic trust (QDOT) distributions for decedents who died before enactment.