On January 24, 2017 Congresswoman Kristi Noem introduced H.R. 631 in the House. H.R. 631 would repeal, as of the date of enactment, the Federal Estate and Generation Skipping Transfer Tax. There are special rules for existing QDOTs which would continue the estate tax on non-exempt principal distributions from the existing QDOT for 10 years after the date of enactment. On the same day Senator Thune introduced similar legislation in the Senate.
The legislation would keep the gift tax in place and continue to index the current exemption amount ($5,490,000 in 2017). The maximum gift tax rate would be reduced to 35%.
