Bill > HR4061

This bill, titled the "Sensible Estate Tax Act of 2014," proposes significant reforms to the estate and gift tax, which are taxes levied on the transfer of a deceased person's assets or on large gifts made during their lifetime. Key provisions include lowering the estate tax exclusion amount from $5,000,000 to $1,000,000, meaning only estates valued above $1,000,000 would be subject to the tax, and adjusting this amount for inflation starting in 2014. The bill also revises the estate tax rate brackets, introducing higher rates for larger estates, with the top rate increasing to 55% for estates over $10,000,000, and these rates will also be adjusted for inflation annually after 2014. Furthermore, it modifies how gift taxes are calculated to align with the new estate tax rates and applicable credit amounts, and it restores the credit for state transfer taxes while repealing the deduction for state transfer taxes for estates of decedents dying after December 31, 2014. The bill also introduces new valuation rules for certain transfers of nonbusiness assets within entities, preventing discounts on such assets and limiting minority discounts in specific family-controlled entities, effective for transfers after the bill's enactment. Additionally, it mandates consistent basis reporting between estates and gift recipients and the IRS, requiring executors and gift-givers to report property values that align with estate or gift tax returns, with penalties for inconsistent reporting, and it establishes a minimum 10-year term for grantor retained annuity trusts and limits the duration of generation-skipping transfer (GST) tax exemptions for dynasty trusts to 90 years after their creation.