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Estate and Gift Tax Hike: New Rates and Trust Restrictions for the Wealthiest

This bill significantly increases estate, gift, and generation-skipping transfer taxes, primarily targeting the wealthiest Americans. Key changes include lowering the estate tax exclusion amount to $3.5 million and introducing new, higher tax rates, reaching 65% for estates over $1 billion. The legislation also aims to close tax avoidance loopholes by tightening rules on trusts and asset valuation, directly impacting the estate planning strategies of very affluent families.
Key points
Estate Tax Exclusion: The basic exclusion amount for estate tax is reduced to $3.5 million (down from current levels).
New Tax Rates: Introduction of progressive estate tax rates, peaking at 65% for estates valued over $1 billion.
Trust Restrictions: Stricter rules for Grantor Retained Annuity Trusts (GRATs) and Grantor Trusts to prevent their use for avoiding transfer taxes.
Asset Valuation: Limitations on applying valuation discounts for interests in family entities and nonbusiness assets, increasing the taxable base.
Farm and Conservation Relief: Increases the maximum exclusion for farm real property and land subject to conservation easements, potentially aiding in the preservation of these assets.
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Expired
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Additional Information
Print number: 118_S_1178
Sponsor: Sen. Sanders, Bernard [I-VT]
Process start date: 2023-04-18
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Summarized by: gemini-flash-latest
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 118_S_1178.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • Estate Tax Exclusion: The basic exclusion amount for estate tax is reduced to $3.5 million (down from current levels).
  • New Tax Rates: Introduction of progressive estate tax rates, peaking at 65% for estates valued over $1 billion.
  • Trust Restrictions: Stricter rules for Grantor Retained Annuity Trusts (GRATs) and Grantor Trusts to prevent their use for avoiding transfer taxes.
  • Asset Valuation: Limitations on applying valuation discounts for interests in family entities and nonbusiness assets, increasing the taxable base.
  • Farm and Conservation Relief: Increases the maximum exclusion for farm real property and land subject to conservation easements, potentially aiding in the preservation of these assets.
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 2025-12-30.

CATEGORIES

Taxes Family Real Estate