In early March, Representatives Kevin Brady and Sanford Bishop introduced an estate tax repeal bill currently known as HR 1105. Although this isn’t the first estate tax repeal bill to appear as possible legislation, it’s quite likely to head to the House floor for a vote. It would be the first estate tax repeal bill in the last decade to make it that far. 

While the specifics of the text inside are not released yet, it’s anticipated that it would suggest amending the Internal Revenue Code to repeal generation-skipping transfer and estate transfer taxes. It’s also expected that a maximum 35 percent gift tax rate would become permanent alongside a $5 million lifetime gift tax exemption.

Repealing the estate tax does have traction in the public, especially because it’s perceived to be so harmful to American businesses and farms considered the backbone of the economy. Combined with the fact that the estate tax brings in under 1 percent of the government’s revenue, the Representatives who introduced the bill believe that it’s time for changes with the estate tax. The bipartisan legislation has already moved though subcommittee hearings, a Senate introduction of the bill, and the vote on the House floor.

To learn more about possible changes in the estate planning sphere, contact us to set up a meeting for review of your plans at (601) 925-9797.