I 
112TH CONGRESS 
1ST SESSION H. R. 1259 
To amend the Internal Revenue Code of 1986 to repeal the estate and 
generation-skipping transfer taxes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2011 
Mr. BRADY of Texas (for himself, Mr. ROSS of Arkansas, Mrs. NOEM, Mr. 
BOREN, and Mr. NUNES) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to repeal 
the estate and generation-skipping transfer taxes, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Death Tax Repeal Per-
manency Act of 2011’’. 
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SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING 
TRANSFER TAXES. 
(a) ESTATE TAX REPEAL.—Subchapter C of chapter 
11 of subtitle B of the Internal Revenue Code of 1986 
is amended by adding at the end the following new section: 
‘‘SEC. 2210. TERMINATION. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), this chapter shall not apply to the estates of decedents 
dying on or after the date of the enactment of the Death 
Tax Repeal Permanency Act of 2011. 
‘‘(b) CERTAIN DISTRIBUTIONS FROM QUALIFIED 
DOMESTIC TRUSTS.—In applying section 2056A with re-
spect to the surviving spouse of a decedent dying before 
the date of the enactment of the Death Tax Repeal Per-
manency Act of 2011— 
‘‘(1) section 2056A(b)(1)(A) shall not apply to 
distributions made after the 10-year period begin-
ning on such date, and 
‘‘(2) section 2056A(b)(1)(B) shall not apply on 
or after such date.’’. 
(b) GENERATION-SKIPPING
TRANSFER
TAX
RE-
PEAL.—Subchapter G of chapter 13 of subtitle B of such 
Code is amended by adding at the end the following new 
section: 
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(e) SUNSET NOT APPLICABLE.— 
(1) Section 901 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 shall not 
apply to title V of such Act in the case of estates 
of decedents dying, and transfers made, on or after 
the date of the enactment of this Act. 
(2) Section 304 of the Tax Relief, Unemploy-
ment Insurance Reauthorization, and Job Creation 
Act of 2010 is hereby repealed. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to the estates of decedents dying, 
and generation-skipping transfers, after the date of the 
enactment of this Act. 
SEC. 3. MODIFICATIONS OF GIFT TAX. 
(a) COMPUTATION OF GIFT TAX.—Subsection (a) of 
section 2502 of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(a) COMPUTATION OF TAX.— 
‘‘(1) IN GENERAL.—The tax imposed by section 
2501 for each calendar year shall be an amount 
equal to the excess of— 
‘‘(A) a tentative tax, computed under para-
graph (2), on the aggregate sum of the taxable 
gifts for such calendar year and for each of the 
preceding calendar periods, over 
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‘‘(B) a tentative tax, computed under para-
graph (2), on the aggregate sum of the taxable 
gifts for each of the preceding calendar periods. 
‘‘(2) RATE SCHEDULE.— 
‘‘If the amount with respect to which the 
tentative tax to be computed is:.
The tentative tax 
is: 
Not over $10,000 ...........................................................
18% of such amount. 
Over $10,000 but not over $20,000 ..............................
$1,800, plus 20% of 
the excess over 
$10,000. 
Over $20,000 but not over $40,000 ..............................
$3,800, plus 22% of 
the excess over 
$20,000. 
Over $40,000 but not over $60,000 ..............................
$8,200, plus 24% of 
the excess over 
$40,000. 
Over $60,000 but not over $80,000 ..............................
$13,000, plus 26% of 
the excess over 
$60,000. 
Over $80,000 but not over $100,000 ............................
$18,200, plus 28% of 
the excess over 
$80,000. 
Over $100,000 but not over $150,000 ..........................
$23,800, plus 30% of 
the excess over 
$100,000. 
Over $150,000 but not over $250,000 ..........................
$38,800, plus 32% of 
the excess of 
$150,000. 
Over $250,000 but not over $500,000 ..........................
$70,800, plus 34% of 
the excess over 
$250,000. 
Over $500,000 ...............................................................
$155,800, plus 35% of 
the excess of 
$500,000.’’. 
(b) TREATMENT
OF
CERTAIN
TRANSFERS
IN 
TRUST.—Section 2511 (relating to transfers in general) 
is amended by adding at the end the following new sub-
section: 
‘‘(c) TREATMENT
OF
CERTAIN
TRANSFERS
IN 
TRUST.—Notwithstanding any other provision of this sec-
tion and except as provided in regulations, a transfer in 
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trust shall 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 subpart E of part I of sub-
chapter J of chapter 1.’’. 
(c) LIFETIME GIFT EXEMPTION.—Paragraph (1) of 
section 2505(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(1) the amount of the tentative tax which 
would be determined under the rate schedule set 
forth in section 2502(a)(2) if the amount with re-
spect to which such tentative tax is to be computed 
were $5,000,000, reduced by’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 2505(a) of such Code is amended 
by striking the last sentence. 
(2) The heading for section 2505 of such Code 
is amended by striking ‘‘UNIFIED’’. 
(3) The item in the table of sections for sub-
chapter A of chapter 12 of such Code relating to 
section 2505 is amended to read as follows: 
‘‘Sec. 2505. Credit against gift tax.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to gifts made on or after the date 
of the enactment of this Act. 
(f) TRANSITION RULE.— 
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(1) IN
GENERAL.—For purposes of applying 
sections 1015(d), 2502, and 2505 of the Internal 
Revenue Code of 1986, the calendar year in which 
this Act is enacted shall be treated as 2 separate cal-
endar years one of which ends on the day before the 
date of the enactment of this Act and the other of 
which begins on such date of enactment. 
(2) APPLICATION
OF
SECTION 2504(b).—For 
purposes of applying section 2504(b) of the Internal 
Revenue Code of 1986, the calendar year in which 
this Act is enacted shall be treated as one preceding 
calendar period. 
Æ 
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