Estate Tax Rate Reduction Act

The Estate Tax Rate Reduction Act lowers the federal estate tax rate to 20% for taxable estates, gifts, and generation-skipping transfers. This change replaces the previous progressive rate schedule with a flat 20% rate, applying to estates of decedents dying, gifts, and certain transfers after December 31, 2024. The bill affects individuals with estates exceeding the current tax exemption threshold, as it reduces the tax rate on the taxable portion of those estates. It does not alter the exemption amount, meaning only estates above the threshold are subject to this rate reduction.