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Estate and Gift Taxes: Higher Rates and Lower Exemptions for Large Estates

The bill, cited as the 'For the 99.5 Percent Act', alters the rules for estate, gift, and generation-skipping transfer taxes by lowering the tax-exempt amount and increasing rates for the largest estates. New rules are introduced for nonbusiness asset valuation and limitations on certain estate planning strategies, such as specific types of trusts (e.g., GRATs).
Key points
Reduction of the basic estate tax exclusion amount to $3.5 million, and the gift tax exclusion amount to $1 million.
Introduction of new, higher estate tax rates, reaching 65% for amounts exceeding $1 billion.
Limitation on the use of certain tax strategies, including changes to the valuation rules for nonbusiness assets and restrictions on Grantor Retained Annuity Trusts (GRATs).
Modification of valuation rules for farm real property and land subject to conservation easements, increasing the maximum exclusion amount.
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Expired
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Additional Information
Print number: 117_HR_2576
Sponsor: Rep. Gomez, Jimmy [D-CA-34]
Process start date: 2021-04-15
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Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

For the 99.5 Percent Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2576.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-15.

What are the main provisions?

Key points include:

  • Reduction of the basic estate tax exclusion amount to $3.5 million, and the gift tax exclusion amount to $1 million.
  • Introduction of new, higher estate tax rates, reaching 65% for amounts exceeding $1 billion.
  • Limitation on the use of certain tax strategies, including changes to the valuation rules for nonbusiness assets and restrictions on Grantor Retained Annuity Trusts (GRATs).
  • Modification of valuation rules for farm real property and land subject to conservation easements, increasing the maximum exclusion amount.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Gomez, Jimmy [D-CA-34].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Family Real Estate