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Lower Estate and Gift Taxes: New Rules for Wealth Transfer

This act reduces the tax rate on estates, gifts, and generation-skipping transfers to 20%. These changes could mean that heirs and recipients of gifts will pay less tax on transferred assets. The new rules apply to estates of decedents dying and gifts made after December 31, 2020.
Key points
Main change: The tax rate on estates, gifts, and generation-skipping transfers is reduced to 20%.
Benefit for citizens: Potentially lower tax burdens when transferring wealth between generations or as gifts.
Effective date: The changes apply to estates of decedents dying and gifts made after December 31, 2020.
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Expired
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Additional Information
Print number: 117_S_1627
Sponsor: Sen. Cotton, Tom [R-AR]
Process start date: 2021-05-13
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Estate Tax Rate Reduction Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1627.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-05-13.

What are the main provisions?

Key points include:

  • Main change: The tax rate on estates, gifts, and generation-skipping transfers is reduced to 20%.
  • Benefit for citizens: Potentially lower tax burdens when transferring wealth between generations or as gifts.
  • Effective date: The changes apply to estates of decedents dying and gifts made after December 31, 2020.
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 Sen. Cotton, Tom [R-AR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Family