February 19, 2025

On February 13, 2025, U.S. Senators Kevin Cramer (R-ND) and John Thune (R-SD) introduced the Death Tax Repeal Act, a bill aimed at permanently eliminating the federal estate tax and generation-skipping transfer tax. The proposed legislation also seeks to reduce the federal gift tax rate from 40% to 35%, while maintaining the step-up in basis for inherited assets.

Why This Matters

Senator Cramer emphasized that taxing assets after death results in double taxation, as individuals already pay taxes on their income during life. Senator Thune pointed out that the estate tax disproportionately burdens family-owned businesses, making it difficult for them to pass down wealth across generations.

However, it’s crucial to note that this is only a bill—it is not yet law. Similar bills have been introduced before, and while they have gained support from business groups, their passage is uncertain. We at Omni 360 Advisors and Omni Legacy Law will be closely monitoring this legislation.

Key Considerations

• The estate tax is still in effect until (and unless) this bill becomes law.
• The gift tax remains in place—this bill does not eliminate it. This is likely intentional to prevent large-scale shifting of wealth across generations without taxation.
• Over 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition support the bill, including major organizations such as the National Federation of Independent Business, the National Restaurant Association, and the U.S. Chamber of Commerce.
• You can find more details here: https://www.cramer.senate.gov/news/press-releases/cramer-thune-introduce-death-tax-repeal-act

What Should You Do?

If you are a business owner, high-net-worth individual, or someone with significant estate planning concerns, now is the time to evaluate your current plan. Even if this bill were to pass, there are many nuances in estate planning that could still impact your long-term strategy.

At Omni 360 Advisors and Omni Legacy Law, we specialize in tax-efficient estate planning, business succession strategies, and wealth preservation. If you’re concerned about how potential changes in estate tax law may affect your long-term planning, reach out to our team for a personalized review.

Contact us today to discuss how we can help you navigate these evolving laws and protect your legacy.