Bill > S2899

This bill, titled the "Responsible Estate Tax Act," aims to reinstate and modify estate, gift, and generation-skipping transfer taxes, with provisions taking effect for transfers after December 31, 2014. Key changes include increasing tax rates for larger estates, with a top rate of 55% for estates over $50 million, and imposing an additional 10% surtax on estates exceeding $500 million. The basic exclusion amount for estate tax is set at $3.5 million, while the gift tax exclusion is adjusted to reflect a $1 million baseline. The bill also introduces new rules for valuing certain farm and conservation easement properties, increasing the exclusion for conservation easements and adjusting valuation methods for nonbusiness assets within entities, effectively limiting minority discounts for family-controlled businesses. Furthermore, it mandates consistent basis reporting between estate and gift tax returns and the acquisition of property, requiring executors and donors to provide detailed statements to beneficiaries and recipients, with penalties for inconsistent reporting. Finally, it introduces specific requirements for grantor retained annuity trusts, mandating a minimum 10-year term and a minimum remainder interest value, and expands transfer tax rules to certain grantor trusts, treating assets within them as part of the deceased owner's estate or as taxable gifts upon distribution or relinquishment of ownership.