Death Tax Repeal Act of 2025

Repeal of Estate Tax: The bill specifies that the estate tax chapter shall not apply to the estates of decedents dying on or after the date of enactment (Section 2, Section 2.a).

Repeal of Generation-Skipping Transfer Tax: The bill states that the generation-skipping transfer tax chapter shall not apply to such transfers on or after the date of enactment (Section 2, Section 2.b).

Inflation-Adjusted Gift Exemption: The lifetime gift exemption is set to be adjusted annually based on cost-of-living adjustments (Section 3, Section 3.c).

Limitations on Qualified Domestic Trusts: For certain distributions from Qualified Domestic Trusts involving a surviving spouse of a decedent who died before the Act's enactment, specific sections of the code will no longer apply after a 10-year period or on a specific date (Section 2, Section 2.a.b).

Taxation of Certain Transfers in Trust: A transfer in trust will be treated as a taxable gift under section 2503, unless the trust is treated as wholly owned by the donor or the donor's spouse under specific subpart E provisions (Section 3, Section 3.b).