“To amend the Internal Revenue Code of 1986 to exclude from the value of taxable estates bequests to certain exempt organizations.”
No CRS summary available for this bill.
This section establishes an estate tax deduction for the value of bequests, devises, or transfers from the gross estate to organizations exempt from tax under section 501(a) and described in section 501(c)(4), (5), or (6) (i.e., social welfare organizations, labor organizations, and business leagues such as chambers of commerce). (As background, the existing estate tax charitable deduction under section 2055 applies only to bequests to governments and section 501(c)(3) organizations.) The deduction incorporates parallel rules to section 2055 for powers of appointment under section 2041, reduction for death taxes payable from the bequest, a limit not exceeding the property's value included in the gross estate, and disallowance for non-qualified split interests (unless valued as a qualified interest under section 2702(b) using section 7520 tables). The provision applies to estates of decedents dying, or bequests made, after December 31, 2025.