Toward a Reality-Based Estate Tax
Boston College Law Review, Vol. 57, No. 3, 2016
University of Baltimore School of Law Legal Studies Research Paper No. 2016-09
25 Pages Posted: 22 May 2016 Last revised: 30 Aug 2016
Date Written: May 20, 2016
Abstract
Currently, the estate tax does not accurately value the property and transactions that it is meant to cover. Additionally, the marital and charitable deductions do not reflect actual associated transfers, instead skewing their benefits away from their purported beneficiaries. This Article proposes reforming the estate tax by eliminating these sources of unreality and distortion, and to make the current estate tax a reality-based tax. Through six specific proposals, the Article identifies solutions to the problems associated with testamentary transfers, puts forth alternative methods of valuation to prevent gaming of transfer taxes, and offers significant modifications to two deduction provisions.
Keywords: estate tax, valuation, FLP discounts, GRAT, CLAT, actuarial tables, QTIP, charitable deduction, marital deduction
JEL Classification: H24, K19, K34
Suggested Citation: Suggested Citation
