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Estate and Gift Tax Changes: Higher Rates, Lower Exemptions

This act significantly alters estate, gift, and generation-skipping transfer tax rules, increasing tax rates for large estates and reducing tax-free amounts. The bill also modifies valuation rules for certain real property and introduces new regulations regarding trusts.
Key points
Increased estate and gift tax rates, with a top rate of 65% for amounts over $1 billion.
Reduced estate tax exclusion amount to $3.5 million and gift tax exclusion to $1 million.
Modifications to valuation rules for farm real property and land subject to conservation easements, increasing exclusion limits for these assets.
New rules for taxing trusts, including a required minimum 10-year term for Grantor Retained Annuity Trusts (GRATs).
Limitation of the annual gift tax exclusion to $10,000 per donee, with an additional cumulative limit for certain types of transfers.
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Expired
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Additional Information
Print number: 117_S_994
Sponsor: Sen. Sanders, Bernard [I-VT]
Process start date: 2021-03-25
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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_S_994.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-03-25.

What are the main provisions?

Key points include:

  • Increased estate and gift tax rates, with a top rate of 65% for amounts over $1 billion.
  • Reduced estate tax exclusion amount to $3.5 million and gift tax exclusion to $1 million.
  • Modifications to valuation rules for farm real property and land subject to conservation easements, increasing exclusion limits for these assets.
  • New rules for taxing trusts, including a required minimum 10-year term for Grantor Retained Annuity Trusts (GRATs).
  • Limitation of the annual gift tax exclusion to $10,000 per donee, with an additional cumulative limit for certain types of transfers.
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. Sanders, Bernard [I-VT].

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 2026-01-02.

CATEGORIES

Taxes Family Real Estate