Death Tax Elimination Act of 2001

1/17/2023, 12:33 AM
Death Tax Elimination Act - Repeals the estate tax, gift tax, and the tax on generation-skipping transfers, effective January 1, 2011. Provides for annual reductions of the tax until such date.

Increases the unified estate and gift tax credit to $1.3 million.

Repeals the estate and gift tax provisions applicable to family-owned businesses.

Amends provisions concerning the special rules for allocation of the generation-skipping tax (GST) exemption to provide, as a general rule, that: (1) if any individual makes an indirect skip during such individual's lifetime, any unused portion of such individual's GST exemption shall be allocated to the property transferred to the extent necessary to make the inclusion ratio for such property zero; and (2) if the amount of the indirect skip exceeds such unused portion, the entire unused portion shall be allocated to the property transferred.

Declares that, if a trust is severed in a qualified severance, the trusts resulting from such severance shall be treated as separate trusts thereafter.

Revises valuation rules for gifts for which a gift tax return was filed or deemed allocation made. Provides that, if an allocation of the GST exemption to any transfers of property is deemed to have been made at the close of an estate tax inclusion period, the value of the property shall be its value at such time.

Directs the Secretary of the Treasury to prescribe circumstances and procedures under which extensions of time will be granted to make an allocation of GST exemption or an election not to apply specified allocation requirements to certain lifetime direct skips, indirect skips, or transfers to a particular trust.

Increases the permissible number of partners or shareholders in a closely held business for purposes of eligibility for an extension of estate tax payments.

Congress
107

Number
HR - 8

Introduced on
2001-03-14

# Amendments
5

Sponsors
+5

Cosponsors
+5

Variations and Revisions

4/6/2001

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Death Tax Elimination Act - Repeals the estate tax, gift tax, and the tax on generation-skipping transfers, effective January 1, 2011. Provides for annual reductions of the tax until such date.

Increases the unified estate and gift tax credit to $1.3 million.

Repeals the estate and gift tax provisions applicable to family-owned businesses.

Amends provisions concerning the special rules for allocation of the generation-skipping tax (GST) exemption to provide, as a general rule, that: (1) if any individual makes an indirect skip during such individual's lifetime, any unused portion of such individual's GST exemption shall be allocated to the property transferred to the extent necessary to make the inclusion ratio for such property zero; and (2) if the amount of the indirect skip exceeds such unused portion, the entire unused portion shall be allocated to the property transferred.

Declares that, if a trust is severed in a qualified severance, the trusts resulting from such severance shall be treated as separate trusts thereafter.

Revises valuation rules for gifts for which a gift tax return was filed or deemed allocation made. Provides that, if an allocation of the GST exemption to any transfers of property is deemed to have been made at the close of an estate tax inclusion period, the value of the property shall be its value at such time.

Directs the Secretary of the Treasury to prescribe circumstances and procedures under which extensions of time will be granted to make an allocation of GST exemption or an election not to apply specified allocation requirements to certain lifetime direct skips, indirect skips, or transfers to a particular trust.

Increases the permissible number of partners or shareholders in a closely held business for purposes of eligibility for an extension of estate tax payments.

Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to phaseout the estate and gift taxes over a 10-year period, and for other purposes.

Policy Areas
Taxation

Potential Impact
Administrative remedies•
Agriculture and Food•
Capital gains tax•
Close corporations•
Commerce•
Conservation easements•
Department of the Treasury•
Environmental Protection•
Estate tax•
Families•
Family enterprises•
Family farms•
Finance and Financial Sector•
Fines (Penalties)•
Gift tax•
Government Operations and Politics•
Governmental investigations•
Housing and Community Development•
Housing finance•
Income tax•
Inheritance tax•
Law•
Metropolitan areas•
National forests•
Partnerships•
Personal income tax•
Public Lands and Natural Resources•
Real estate appraisal•
Stockholders•
Tax administration•
Tax credits•
Tax cuts•
Tax deductions•
Tax exclusion•
Tax exemption•
Tax penalties•
Tax rates•
Tax returns•
Trusts and trustees•
Urban affairs•
Urban forestry•
Valuation•
Wilderness areas

Comments

Related

Recent Activity

Latest Summary11/28/2006
Death Tax Elimination Act - Repeals the estate tax, gift tax, and the tax on generation-skipping transfers, effective January 1, 2011. Provides for annual reductions of the tax until such date.

Increases the unified estate and gift tax credit to $1...


Latest Action6/12/2002
Returned to the Calendar. {pursuant to the order of April 23, 2002}.