Congress moves to eliminate taxes on inherited wealth for the ultra-rich
S. 587 — Death Tax Repeal Act of 2025 · Filed by John Thune (R-SD) · 46 cosponsors · Introduced Feb 13, 2025 · Referred to committee
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What it does
This bill eliminates the federal estate tax (the 'death tax') and generation-skipping transfer tax for all deaths occurring after enactment, meaning wealthy families can pass unlimited assets to heirs without federal tax. It also modifies the gift tax by establishing a $10 million lifetime exemption (adjusted for inflation) and narrowing what counts as a taxable gift. The primary beneficiaries are high-net-worth individuals and families with substantial estates; ordinary Americans with modest assets are unaffected because the estate tax already applies only to estates exceeding ~$13.6 million (2024).
Why we flagged it
The bill's core function is to repeal federal taxes on large estates and generation-skipping transfers, directly reducing the tax burden on inherited wealth. The gift tax modifications serve the same purpose—lowering the cost of transferring assets to heirs during life.
What the text implies
- Elimination of the estate tax removes a key mechanism for preventing dynastic wealth concentration; over time, this may widen wealth inequality as large fortunes pass untaxed across generations.
- The $10 million lifetime gift exemption (indexed for inflation) effectively allows wealthy individuals to transfer substantial assets tax-free during their lifetimes, further eroding the tax base.
The full analysis lists 5 implications of this text.
Who stands to gain
ultra-high-net-worth individuals and families; estate planning attorneys and wealth management firms; trust and fiduciary service providers