Fair Trusts for Fiscal Responsibility Act

This bill would create a new yearly federal tax on the net value of assets held by certain trusts, starting with calendar years after 2026. The tax rate would rise in steps from 0 percent to 3 percent, with brackets tied to dollar thresholds (such as $50 million and $1 billion) and to amounts allocated by each beneficiary. Charitable trusts, certain retirement trusts, and trusts the grantor can fully revoke alone would not be covered. Trusts would have to report their net assets and beneficiaries each year, and taxes paid would be tracked in accounts that can be credited against later estate and generation-skipping taxes. The bill would also treat income or asset taxes a person pays on behalf of certain grantor trusts as taxable gifts.

Full text and official record on Congress.gov

Sponsors

• Patty Murray Democrat sponsor
• 4 cosponsors