Daniel J. Hemel and Robert Lord: Closing Gaps in the Estate and Gift Tax Base (August 13, 2021)

Daniel J. Hemel of University of Chicago – Law School and Robert Lord of Americans for Tax Fairness have made available for download their article, “Closing Gaps in the Estate and Gift Tax Base,” published in SSRN. The abstract is as follows:

Three transfer tax minimization mechanisms—zeroed-out grantor retained annuity trusts (GRATs), intentionally defective grantor trusts (IDGTs), and family-controlled entities with steep valuation discounts—significantly shrink the federal estate and gift tax base. This white paper explains how Congress can close all three loopholes. We estimate that these actions—along with complementary base-protecting and base-expanding proposals—would raise more than $65 billion over the fiscal year 2022 to fiscal year 2031 window (and possibly much more than $65 billion). They also would enhance the progressivity of the federal tax system and bolster the long-term revenue-raising capacity of the estate and gift taxes.

To see the full article, click: “Closing Gaps in the Estate and Gift Tax Base” by Daniel J. Hemel and Robert Lord

Posted by Tristan Baird, Associate Editor, Wealth Strategies Journal

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