Responsible Estate Tax Act

The Responsible Estate Tax Act (H.R. 5764) proposes to restore and modify the federal estate tax, which applies to the transfer of property after a person’s death. The bill would establish a graduated tax rate starting at 35% for estates valued over $3.5 million, reaching a maximum rate of 55% for estates over $50 million, and adding a 10% surtax on estates exceeding $500 million.

For most citizens, this legislation would have no direct financial impact, as it specifically targets high-value estates. However, for qualifying families, the bill includes provisions to increase tax protections for farmland and conservation easements, and it introduces stricter valuation rules for certain types of trusts and business interests to ensure consistent tax reporting.