Changes to estate and gift taxes: new rates and limits
The bill, cited as the 'For the 99.5 Percent Act', amends the Internal Revenue Code of 1986 to reinstate and modify estate and gift taxes. It introduces a progressive tax scale with rates ranging from 39% to 65% for amounts over $1 billion and sets the basic estate tax exclusion amount at $3.5 million. It also modifies asset valuation rules, including for farm real property and nonbusiness assets, and establishes new requirements for trusts.
Key points
Establishing an estate tax rate of 65% for amounts exceeding $1 billion.
Setting the basic estate tax exclusion amount at $3.5 million.
Limiting the use of valuation discounts for nonbusiness assets and interests in family-controlled entities.
Introducing a minimum 10-year term requirement for Grantor Retained Annuity Trusts (GRATs) and requirements regarding the remainder interest value.
Increasing the special use valuation limit for farm real property to $3 million and the exclusion limit for land subject to conservation easements to $2 million.
Expired
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