Congress Proposes Massive Cuts to Estate and Gift Tax Exemptions

FOR IMMEDIATE RELEASE
Congress Proposes Sweeping Cuts to Estate and Gift Tax
Exemptions: What Clients Need to Know Now
Las Vegas, NV - April 16, 2026 - U.S. Senator Chris Van Hollen (D-Md.) has introduced the
Strengthen Social Security by Taxing Dynastic Wealth Act, a sweeping piece of legislation that
would dramatically reduce the federal estate and gift tax exemptions and increase transfer tax rates
to levels not seen since 2009.[1] eCorp Services urges clients and practitioners to carefully assess
the impact of this proposal on existing estate plans and wealth transfer strategies without delay.
The Proposed Changes
The legislation, introduced on March 25, 2026, seeks to revert the estate and gift tax framework to
its 2009 configuration.[1] The following table summarizes the key differences between the current
law and the proposed changes:
Parameter Current Law
(2026)
Proposed Under the
Act
Federal Estate Tax Exemption (Individual) $15,000,000 $3,500,000
Federal Estate Tax Exemption (Married Couple) $30,000,000 $7,000,000
Lifetime Gift Tax Exemption (Individual) $15,000,000 (unified) $1,000,000
Lifetime Gift Tax Exemption (Married Couple) $30,000,000 (unified) $2,000,000
Top Estate and Gift Tax Rate 40% 45%
These proposed changes represent a reduction of more than 75 percent in the individual estate tax
exemption and a reduction of more than 93 percent in the lifetime gift tax exemption.[1][3] For many
clients who have structured their wealth transfer plans around the current generous exemptions, the
impact could be substantial and immediate upon enactment.
The Social Security Connection

A particularly significant aspect of this legislation is its strategic tie-in to Social Security funding. The
bill proposes to deposit all revenues generated by the estate, gift, and generation-skipping transfer
taxes directly into the Social Security OASI/DI Trust Fund, and would combine Social Security's two
existing trust funds into a single unified fund.[1] This linkage is politically consequential. Social
Security is a program that cannot be permitted to lapse, and by tying estate tax reform directly to its
solvency, Senator Van Hollen has crafted a proposal with considerable political durability. Legislators
who might otherwise oppose estate tax increases may face significant pressure to support a bill
framed as protecting retirement security for millions of Americans.
Why Clients Cannot Afford to Wait
The potential for a change in control in Congress following the upcoming elections makes the
passage of this legislation a realistic possibility. Practitioners should not treat this proposal as a
distant or theoretical concern. Documents drafted today under the assumption that current
exemption levels will remain in place may prove inadequate or suboptimal if the law changes.
Clients with estates between $3.5 million and $15 million are now potentially exposed to federal
estate tax for the first time, and those who have relied on the unified gift and estate tax exemption
to fund irrevocable trusts, family limited partnerships, or other wealth transfer vehicles may find
their remaining lifetime exemption sharply curtailed.
Practitioners should consider reviewing existing estate plans to evaluate whether accelerating
lifetime gifting strategies, restructuring trust arrangements, or implementing other tax-efficient
transfer mechanisms may be appropriate in light of this legislative risk. The time to act is before
the law changes, not after.
About eCorp Services
eCorp Services, located at 3175 E. Warm Springs Road, Suite 130, Las Vegas, NV 89120, is a leading provider
of comprehensive business and legal support solutions, committed to delivering timely insights and expert
guidance to help clients navigate complex regulatory environments and achieve their strategic objectives.
For more information, please contact eCorp Services at info@ecorpservices.com.
References
[1] Van Hollen Introduces Bill to Strengthen Social Security by Ending Republicans' Tax Giveaways for Ultra-Wealthy Estates
[2] S.1950 - Strengthen Social Security by Taxing Dynastic Wealth Act
[3] IRSAnnounces Increased Gift and Estate Tax Exemption Amounts for 2026

Jonathan January
eCorp Services
3175 E. Warm Springs Road, Suite 130
Las Vegas, NV 89120
702.238.8301
jonathan@ecorpservices.com

eCorp Services is a leading provider
of comprehensive business and legal support solutions, committed to delivering timely insights and expert guidance to help clients navigate complex regulatory environments and achieve their strategic objectives.

This release was published on openPR.