I 
115TH CONGRESS 
2D SESSION 
H. R. 6329 
To amend the Internal Revenue Code of 1986 to exclude from the value 
of taxable estates bequests to certain exempt organizations. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 10, 2018 
Mrs. NOEM (for herself and Mr. SMITH of Missouri) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
from the value of taxable estates bequests to certain 
exempt organizations. 
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 ‘‘Family Business Leg-
acy Act of 2018’’. 
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SEC. 2. EXCLUSION OF BEQUESTS TO CERTAIN EXEMPT OR-
GANIZATIONS FROM VALUE OF TAXABLE ES-
TATE. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new section: 
‘‘SEC. 2059. BEQUESTS TO CERTAIN EXEMPT ORGANIZA-
TIONS. 
‘‘(a) IN GENERAL.—For purposes of the tax imposed 
by section 2001, the value of the taxable estate shall be 
determined by deducting from the value of the gross estate 
the amount of all bequests, devises, or transfers to or for 
the use of any organization exempt from tax under section 
501(a) and described in paragraph (4), (5), or (6) of sec-
tion 501(c). 
‘‘(b) POWERS OF APPOINTMENT.—Property includ-
ible in the decedent’s gross estate under section 2041 (re-
lating to powers of appointment) received by a donee de-
scribed in this section shall, for purposes of this section, 
be considered a bequest of such decedent. 
‘‘(c) DEATH TAXES PAYABLE OUT OF BEQUESTS.— 
If the tax imposed by section 2001, or any estate, succes-
sion, legacy, or inheritance taxes, are, either by the terms 
of the will, by the law of the jurisdiction under which the 
estate is administered, or by the law of the jurisdiction 
imposing the particular tax, payable in whole or in part 
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out of the bequests, legacies, or devises otherwise deduct-
ible under this section, then the amount deductible under 
this section shall be the amount of such bequests, legacies, 
or devises reduced by the amount of such taxes. 
‘‘(d) LIMITATION ON DEDUCTION.—The amount of 
the deduction under this section for any transfer shall not 
exceed the value of the transferred property required to 
be included in the gross estate. 
‘‘(e) DISALLOWANCE OF DEDUCTIONS IN CERTAIN 
CASES.—Where an interest in property (other than an in-
terest described in section 170(f)(3)(B)) passes or has 
passed from the decedent to a person, or for a use, de-
scribed in subsection (a), and an interest (other than an 
interest which is extinguished upon the decedent’s death) 
in the same property passes or has passed (for less than 
an adequate and full consideration in money or money’s 
worth) from the decedent to a person, or for a use, not 
described in subsection (a), no deduction shall be allowed 
under this section for the interest which passes or has 
passed to the person, or for the use, described in sub-
section (a) unless such interest, whether in the form of 
a remainder interest, lead interest, or any other interest, 
is in the form of qualified interest (within the meaning 
of section 2702(b)) and valued under the rules of section 
7520.’’. 
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