Title: Family Business Legacy Act of 2018
Policy area: Taxation

Summary:
Family Business Legacy Act of 2018
This bill amends the Internal Revenue Code, with respect to the estate tax, to allow the value of the taxable estate to 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 certain tax-exempt organizations. The deduction allowed by this bill for any transfer may not exceed the value of the transferred property required to be included in the gross estate.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6329 Introduced in House (IH)]

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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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Business Legacy Act of 
2018''.

SEC. 2. EXCLUSION OF BEQUESTS TO CERTAIN EXEMPT ORGANIZATIONS FROM 
              VALUE OF TAXABLE ESTATE.

    (a) In General.--Part IV of subchapter A of chapter 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 ORGANIZATIONS.

    ``(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 section 
501(c).
    ``(b) Powers of Appointment.--Property includible in the decedent's 
gross estate under section 2041 (relating to powers of appointment) 
received by a donee described 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, succession, 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 
out of the bequests, legacies, or devises otherwise deductible 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 interest described in section 
170(f)(3)(B)) passes or has passed from the decedent to a person, or 
for a use, described 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 subsection (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.''.
    (b) Conforming Amendment.--The table of sections for part IV of 
subchapter A of chapter 11 is amended by inserting at the end the 
following new item:

``Sec. 2059. Bequests to certain exempt organizations.''.
    (c) Effective Date.--The amendments made by the section shall apply 
to estates of decedents dying or bequests, devises, or transfers made 
after December 31, 2018.
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