The federal estate tax exemption sits at $15 million per individual in 2026, but House Bill H.R. 1301, the Death Tax Repeal Act, could eliminate the federal estate tax entirely. Introduced in Congress in February 2025, this legislation proposes a full repeal of both the estate tax and the generation-skipping transfer tax. That change would reshape estate planning for high-net-worth individuals and families across the United States.
While the bill has attracted significant attention, it is far from becoming law. Understanding what H.R. 1301 actually proposes, how the legislative process could change it, and what you should do in the meantime is essential for anyone with a taxable estate. This article answers the question many of our clients are asking right now: should the possibility of repeal change how you plan today?
What does H.R. 1301 propose?
H.R. 1301 targets two specific federal taxes. The first is the federal estate tax, which currently applies to estates valued above the $15 million exemption threshold. When someone passes away with assets exceeding that amount, the estate owes tax on the value above the threshold at rates up to 40 percent. The bill would eliminate this tax for the estates of decedents dying on or after the date the repeal is enacted.
The second tax in the crosshairs is the generation-skipping transfer tax (GSTT). This tax exists to prevent wealthy families from avoiding estate taxes by transferring assets directly to grandchildren or later generations instead of to their children. The GSTT imposes a flat tax, also at 40 percent, on transfers that skip a generation. H.R. 1301 would repeal this tax as well.
Together, these two repeals would remove the primary federal tax mechanisms that apply to inherited wealth. For families with estates above the current exemption threshold, the financial impact could be substantial. The IRS publishes the current rules and thresholds in its estate tax guidance, which remains the operative law unless and until a repeal is enacted.
How the legislative process could change the bill
Legislation of this scope rarely passes Congress in its original form. H.R. 1301 was referred to the House Committee on Ways and Means and would still need to move through committee consideration, floor debates, and likely a reconciliation process between the House and Senate. At each stage, provisions may be added, removed, or modified significantly. You can track the bill’s status and text directly on Congress.gov, which records every official action taken on federal legislation.
Several factors could influence the bill’s trajectory. Budget reconciliation rules may limit what Congress can accomplish through a simple majority vote. Political dynamics in both chambers will shape which provisions survive. Competing priorities, from broader tax reform to spending decisions, could also push the estate tax repeal down the legislative agenda.
There is also the question of whether a full repeal would be permanent or temporary. In 2001, Congress passed the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), which gradually reduced the estate tax and eliminated it entirely for the year 2010. That repeal was temporary by design. The estate tax returned in 2011, and families who had relied on the repeal faced an abrupt policy reversal. A similar scenario could play out if H.R. 1301 passes but includes a sunset provision.
Why you should not delay your estate plan
Waiting for legislation to pass before taking action on your estate plan carries real risk. Bills that propose sweeping tax changes can stall for months or years, undergo significant revision, or fail to advance at all. Meanwhile, your financial situation, family circumstances, and the current tax code continue to create planning needs that exist right now.
The current estate tax exemption of $15 million is historically high. The Tax Cuts and Jobs Act of 2017 had originally scheduled the elevated exemption to be cut roughly in half at the end of 2025. Instead, the One Big Beautiful Bill Act, signed into law in 2025, raised the exemption to $15 million per individual beginning in 2026 and made that level permanent, with annual inflation adjustments starting in 2027. Even so, a future Congress could reduce the exemption, so individuals who delay planning could still miss opportunities to use the larger threshold while it remains available.
Proactive estate planning addresses far more than tax liability. Trusts, powers of attorney, healthcare directives, and beneficiary designations all serve purposes that are independent of whether the estate tax exists. A well-structured estate plan protects your family, ensures your wishes are followed, and can reduce conflict among heirs, regardless of what Congress does. Our tax advisory services team works with clients to align these documents with their broader financial picture.
Lessons from the 2010 estate tax repeal
History offers a useful reference point. The federal estate tax was scheduled to disappear for the calendar year 2010 under EGTRRA’s phase-out, and for part of that year estates faced no separate federal estate tax. However, that window was short-lived. Legislation enacted at the end of 2010 reinstated the tax with a $5 million exemption and a 35 percent top rate for 2011.
Families who assumed the repeal would continue or become permanent were caught off guard. Some had restructured their plans based on the absence of an estate tax, only to face renewed exposure when the law changed again. The lesson is clear: legislative changes to the estate tax can be reversed, and planning solely around a current or proposed law creates vulnerability.
This pattern is directly relevant to H.R. 1301. Even if the bill passes and the estate tax is repealed, a future Congress could reinstate it, potentially at a lower exemption threshold or higher rates than today. Building your estate plan on the assumption that any single piece of legislation will remain permanent is a strategy with significant downside risk.
Steps to take while the bill is pending
Rather than waiting for clarity on H.R. 1301, consider taking several concrete actions now. First, review your current estate plan with a qualified advisor. Confirm that your documents reflect your current wishes, that beneficiary designations are up to date, and that your plan accounts for the current estate tax exemption level.
Second, evaluate whether gifting strategies make sense for your situation. Under current law, you can use part or all of your $15 million exemption during your lifetime through gifts. If the exemption drops in the future, gifts made while the higher exemption was in place are generally protected from clawback under final IRS regulations issued in 2019.
Third, consider the role of trusts in your estate plan. Irrevocable trusts, dynasty trusts, and other structures can provide asset protection, tax efficiency, and generational wealth transfer that remain valuable regardless of whether the estate tax exists. These tools serve planning purposes that extend well beyond tax avoidance.
Finally, stay informed. Work with a tax advisor or estate planning attorney who monitors legislative developments and can help you adjust your plan as the situation evolves. The goal is not to predict what Congress will do, but to build a plan that performs well under multiple scenarios. Coordinating your estate plan with the rest of your financial life is exactly where our broader accounting services add value.
How H.R. 1301 could affect different estate sizes
The impact of the bill varies significantly depending on the size of your estate. For individuals with estates below the current $15 million exemption, the federal estate tax already does not apply. For these individuals, H.R. 1301 would have limited direct impact, though it could matter if the exemption were to drop in the future.
For estates above the threshold, the repeal would eliminate a potentially significant tax liability. An estate valued at $25 million, for example, currently faces estate tax on roughly $10 million of value (the amount above the exemption), which could produce a tax bill in the range of $4 million at the 40 percent top rate. If H.R. 1301 passes, that liability would disappear.
State-level estate taxes are a separate consideration. Several states, including Massachusetts, Oregon, New York, and others, impose their own estate or inheritance taxes with exemption thresholds well below the federal level. H.R. 1301 would only repeal federal taxes, leaving state-level obligations intact. Comprehensive estate planning must account for both, especially for clients who own real estate or operate a business across multiple states.
Frequently Asked Questions
What is H.R. 1301?
H.R. 1301, the Death Tax Repeal Act, is a bill introduced in the U.S. Congress in February 2025 that proposes repealing the federal estate tax and the generation-skipping transfer tax. If enacted, it would eliminate the federal tax currently applied to estates valued above the $15 million exemption. The bill is still in the legislative process and has not been signed into law.
Will the estate tax be eliminated soon?
There is no certainty that the estate tax will be eliminated. H.R. 1301 proposes a full repeal, but the bill must pass both chambers of Congress and be signed by the President. It is likely to face revisions and political hurdles before reaching a final vote, and its timeline remains uncertain.
What is the current estate tax exemption?
The federal estate tax exemption is $15 million per individual in 2026, or up to $30 million for a married couple using portability. The One Big Beautiful Bill Act made this exemption level permanent and indexed it for inflation beginning in 2027, replacing the scheduled sunset that had been part of the Tax Cuts and Jobs Act of 2017.
Should I wait for H.R. 1301 to pass before doing estate planning?
No. Postponing your estate plan based on pending legislation carries risk because bills can change, stall, or fail entirely. A future Congress could still reduce the exemption, so proactive planning remains valuable right now even with the higher exemption in place.
What happened when the estate tax was repealed in 2010?
The federal estate tax was scheduled to disappear for the calendar year 2010 under the Economic Growth and Tax Relief Reconciliation Act. Legislation enacted at the end of 2010 reinstated the tax with a $5 million exemption and a 35 percent top rate for 2011, demonstrating that legislative repeals can be reversed by future Congresses.
Does H.R. 1301 affect state estate taxes?
No. H.R. 1301 only addresses federal estate and generation-skipping transfer taxes. Several states impose their own estate or inheritance taxes with lower exemption thresholds. Even if the federal estate tax is repealed, state-level taxes may still apply to your estate depending on where you live.
