PART I: INTRODUCTION TO THE FEDERAL WEALTH TRANSFER TAXES 1

A. A Historical Perspective 1

Louis Eisenstein, The Rise and Decline of the Estate Tax, 11 Tax L. Rev. 223 (1956) 1

C. Lowell Harriss, Legislative History of Federal Gift Taxation, 18 Taxes 531 (1940) 7

David M. Hudson, Tax Policy and the Federal Taxation of the Transfer of Wealth, 19 Willamette L. Rev. 1 (1983) 10

Edward A. Zelinsky, The Estate and Gift Tax Changes of 1981: A Brief Essay on Historical Perspective, 60 N.C. L. Rev. 821 (1982) 13

Joint Comm. on Tax'n, Description and Analysis of Tax Proposals Relating to Savings and Investment (Capital Gains, IRAs, and Estate and Gift Tax) (JCS-5-97), 105th Cong., 1st Sess. (1997) 18

William S. Blatt, The American Dream in Legislation: The Role of Popular Symbols in Wealth Tax Policy, 51 Tax L. Rev. 287 (1996) 23

B. An Economic Perspective 25

Roy Blough & Carl Shoup, A Report on the Federal Revenue System Submitted To Undersecretary of the Treasury Roswell Magill (1937), reprinted in 70 Tax Notes 1071 (1996) 26

Michael J. Boskin, An Economist's Perspective on Estate Taxation, in Death, Taxes and Family Property (Edward C. Halbach, Jr., ed., 1977) 28

Gerald R. Jantscher, The Aims of Death Taxation, in Death, Taxes and Family Property (Edward C. Halbach, Jr., ed., 1977) 33

B. Douglas Bernheim, Does the Estate Tax Raise Revenue?, in1 Tax Policy and the Economy (Lawrence H. Summers ed., 1987) 36

Henry J. Aaron & Alicia H. Munnell, Reassessing the Role for Wealth Transfer Taxes, 45 Nat'l Tax J. 119 (1992) 38

C. A Reform Perspective 40

Michael J. Graetz, To Praise the Estate Tax, Not To Bury It, 93 Yale L.J. 259 (1983) 40

Harry L. Gutman, Reforming Federal Wealth Transfer Taxes After ERTA, 69 Va. L. Rev. 1183 (1983) 45

Mark L. Ascher, Curtailing Inherited Wealth, 89 Mich. L. Rev. 69 (1990) 46

Thomas A. Robinson, The Federal Wealth Transfer Taxes--A Requiem?, 1 Am J. Tax Pol'y 25 (1983) 51

Joel C. Dobris, A Brief for the Abolition of All Transfer Taxes, 35 Syracuse L. Rev. 1215 (1984) 53

John E. Donaldson, The Future of Transfer Taxation: Repeal, Restructuring and Refinement, or Replacement?, 50 Wash. & Lee L. Rev. 539 (1993) 55

D. The Role of State Law 58

Michael H. Cardozo IV, Federal Taxes and the Radiating Potencies of State Court Decisions, 51 Yale L.J. 783 (1942) 58

Gilbert P. Verbit, State Court Decisions in Federal Transfer Tax Litigation: Bosch Revisited, 23 Real Prop., Prob. & Tr. J. 407 (1988) 59

Bernard Wolfman, Bosch, Its Implications and Aftermath: The Effect of State Court Adjudications on Federal Tax Litigation, 3 U. Miami Inst. on Est. Plan. 2-1 (1969) 65

Paul L. Caron, The Role of State Court Decisions in Federal Tax Litigation: Bosch, Erie, and Beyond, 71 Or. L. Rev. 781 (1992) 69

PART II: THE GIFT TAX 77

A. The Annual Exclusion 77

1. Reform Proposals 77

American Law Institute, Federal Estate and Gift Taxation (1969) 78

Harry L. Gutman, Reforming Federal Wealth Transfer Taxes After ERTA, 69 Va. L. Rev. 1183 (1983) 79

Jeffrey G. Sherman, 'Tis a Gift to be Simple: The Need for a New Definition of "Future Interest" for Gift Tax Purposes, 55 U. Cin. L. Rev. 585 (1987) 83

John G. Steinkamp, Common Sense and the Gift Tax Annual Exclusion, 72 Neb. L. Rev. 106 (1993) 85

Robert B. Smith, Should We Give Away the Annual Exclusion?, 1 Fla. Tax Rev. 361 (1993) 87

2. Gifts to Minors 91

Jerry A. Kasner, Gifts to Children and Grandchildren--With Particular Emphasis on Educational Financing, 48 N.Y.U. Inst. on Fed. Tax'n 22-1 (1990) 91

3. Crummey Trusts 95

Willard H. Pedrick, Crummey Is Really Crummy!, 20 Ariz. St. L.J. 943 (1988) 95

B. Disclaimers 100

John H. Martin, Perspectives on Federal Disclaimer Legislation, 46 U. Chi. L. Rev. 316 (1979) 100

Joan B. Ellsworth, On Disclaimers: Let's Renounce I.R.C. Section 2518, 38 Vill. L. Rev. 693 (1993) 106

C. The Scope of the Gift Tax 110

Robert N. Macris, Open Valuation and the Completed Transfer: A Problem Area in Federal Gift Taxation, 34 Tax L. Rev. 273 (1979) 110

Mitchell M. Gans, Gift Tax: Valuation Difficulties and Gift Completion, 58 Notre Dame L. Rev. 493 (1983) 115

George Cooper, A Voluntary Tax? New Perspectives on Sophisticated Estate Tax Avoidance, 77 Colum. L. Rev. 161 (1977) 121

Paul L. Caron, Taxing Opportunity, 14 Va. Tax Rev. 347 (1994) 124

PART III: THE GROSS ESTATE 131

A. Property Owned at Death 131

William J. Turnier, The Pink Panther Meets the Grim Reaper: Estate Taxation of the Fruits of Crime, 72 N.C. L. Rev. 163 (1993) 132

Bruce Wolk, Federal Tax Consequences of Wealth Transfers Between Unmarried Cohabitants, 27 UCLA L. Rev. 1240 (1980) 137

B. Joint-and-Survivor Tenancies 141

Guy B. Maxfield, Some Reflections on the Taxation of Jointly Held Property, 35 Rec. Ass'n B. City N.Y. 156 (1980) 141

C. Lifetime Transfers with Retained Interests or Powers 146

1. Retained Interests or Powers 146

Charles L.B. Lowndes & Richard B. Stephens, Identification of Property Subject to the Federal Estate Tax, 65 Mich. L. Rev. 105 (1966) 147

Charles L.B. Lowndes, Tax Consequences of Limitations Upon the Exercise of Powers, 1966 Duke L.J. 959 149

Willard H. Pedrick, Grantor Powers and Estate Taxation: The Ties That Bind, 54 Nw. U. L. Rev. 527 (1959) 153

Willard H. Pedrick, Grantor Powers and the Estate Tax: End of an Era?, 71 Nw. U. L. Rev. 704 (1977) 157

John L. Peschel, The Impact of Fiduciary Standards on Federal Taxation of Grantor Trusts: Illusion and Inconsistency, 1979 Duke L.J. 709 163

2. Consideration 167

Charles L.B. Lowndes, Consideration and the Federal Estate and Gift Taxes: Transfers for Partial Consideration, Relinquishment of Marital Rights, Family Annuities, the Widow's Election, and Reciprocal Trusts, 35 Geo. Wash. L. Rev. 50 (1966) 167

D. Contractual Survivor Benefits 171

Bruce Wolk, The Pure Death Benefit: An Estate and Gift Tax Anomaly, 66 Minn. L. Rev. 229 (1982) 172

Harry L. Gutman, A Comment on the ABA Tax Section Task Force Report on Transfer Tax Restructuring, 41 Tax Law. 653 (1988) 177

E. Life Insurance 179

Harry L. Gutman, A Comment on the ABA Tax Section Task Force Report on Transfer Tax Restructuring, 41 Tax Law. 653 (1988) 180

F. Powers of Appointment 185

Erwin N. Griswold, Powers of Appointment and the Federal Estate Tax, 52 Harv. L. Rev. 929 (1939) 185

W. Barton Leach, Powers of Appointment and the Federal Estate Tax--A Dissent, 52 Harv. L. Rev. 961 (1939) 187

Erwin N. Griswold, In Reply, 52 Harv. L. Rev. 967 (1939) 189

American Law Institute, Federal Estate and Gift Taxation (1969) 190

U.S. Treasury Department, Tax Reform for Fairness, Simplicity, and Economic Growth, Report to the President (1984) 190

Joseph M. Dodge, Redoing the Estate and Gift Taxes Along Easy-to-Value Lines, 43 Tax L. Rev. 241 (1988) 192

PART IV: MARITAL AND CHARITABLE DEDUCTIONS 197

A. Marital Deduction 197

1. Origins of the Unlimited Marital Deduction 197

American Law Institute, Federal Estate and Gift Taxation (1969) 198

U.S. Treasury Department, Tax Reform Studies and Proposals, 91st Cong., 1st Sess. (1969) 200

David Westfall, Revitalizing the Federal Estate and Gift Taxes, 83 Harv. L. Rev. 986 (1970) 203

Jerome Kurtz & Stanley S. Surrey, Reform of Death and Gift Taxes: The 1969 Treasury Proposals, the Criticisms, and a Rebuttal, 70 Colum. L. Rev. 1365 (1970) 205

2. The Marital Deduction After ERTA: Issues Under Current Law 207

Wendy C. Gerzog, The Marital Deduction QTIP Provisions: Illogical and Degrading to Women, 5 UCLA Women's L.J. 301 (1995) 208

Mark L. Ascher, The Quandary of Executors Who Are Asked to Plan the Estates of the Dead: The Qualified Terminable Interest Property Election, 63 N.C. L. Rev. 1 (1984) 211

Sheldon F. Kurtz, Marital Deduction Estate Planning Under the Economic Recovery Tax Act of 1981: Opportunities Exist, But Watch the Pitfalls, 34 Rutgers L. Rev. 591 (1982) 214

Douglas A. Kahn, The Federal Estate Tax Burden Borne by a Dissenting Widow, 64 Mich. L. Rev. 1499 (1966) 219

Amy Morris Hess, The Federal Transfer Tax Consequences of Joint and Mutual Wills, 24 Real Prop., Prob. & Tr. J. 469 (1990) 225

3. Further Reform Proposals 229

Harry L. Gutman, Reforming Federal Wealth Transfer Taxes After ERTA, 69 Va. L. Rev. 1183 (1983) 230

Howard E. Abrams, A Reevaluation of the Terminable Interest Rule, 39 Tax L. Rev. 1 (1983) 239

Joseph Isenbergh, Simplifying Retained Life Interests, Revocable Transfers, and the Marital Deduction, 51 U. Chi. L. Rev. 1 (1984) 244

Joseph M. Dodge, Redoing the Estate and Gift Taxes Along Easy-to-Value Lines, 43 Tax L. Rev. 241 (1988) 246

Joan B. Ellsworth, Prescribing TUMS: An Alternative to the Marital Deduction for Unmarried Cohabitants, 11 Va. Tax Rev. 137 (1991) 247

B. Charitable Deduction 249

David Westfall, Revitalizing the Federal Estate and Gift Taxes, 83 Harv. L. Rev. 986 (1970) 250

Boris I. Bittker, Charitable Bequests and the Federal Estate Tax: Proposed Restrictions on Deductibility, 31 Rec. Ass'n B. City N.Y. 159 (1976) 251

George Cooper, A Voluntary Tax? New Perspectives on Sophisticated Estate Tax Avoidance, 77 Colum. L. Rev. 161 (1977) 255

PART V: VALUATION 257

John A. Bogdanski, Federal Tax Valuation (1996) 257

A. Discounts and Premiums 258

Alan L. Feld, The Implications of Minority Interest and Stock Restrictions in Valuing Closely-Held Shares, 122 U. Pa. L. Rev. 934 (1974) 258

Mary Louise Fellows & William H. Painter, Valuing Close Corporations for Federal Wealth Transfer Taxes: A Statutory Solution to the Disappearing Wealth Syndrome, 30 Stan. L. Rev. 895 (1978) 262

U.S. Treasury Department, Tax Reform for Fairness, Simplicity, and Economic Growth, Report to the President (1984) 267

James R. Repetti, Minority Discounts: The Alchemy in Estate and Gift Taxation, 50 Tax L. Rev. 415 (1995) 269

B. Estate Freezes 276

1. Preferred Equity Freezes 276

George Cooper, A Voluntary Tax? New Perspectives on Sophisticated Estate Tax Avoidance, 77 Colum. L. Rev. 161 (1977) 276

William F. Nelson, The Partnership Capital Freeze: Income, Estate, and Gift Tax Considerations, 1 Va. Tax Rev. 11 (1981) 279

2. Legislative Initiatives 284

Joseph M. Dodge, Redoing the Estate and Gift Taxes Along Easy-to-Value Lines, 43 Tax L. Rev. 241 (1988) 284

Joint Committee on Taxation, Federal Transfer Tax Consequences of Estate Freezes (JCS-13-90), 101st Cong., 2d Sess. (1990) 288

3. Estate Freezes Under Current Law 292

James R. Repetti, Minority Discounts: The Alchemy in Estate and Gift Taxation, 50 Tax L. Rev. 415 (1995) 292

Louis S. Harrison, The Real Implications of the New Transfer Tax Valuation Rules--Success or Failure?, 47 Tax Law. 885 (1994) 294

Grayson M.P. McCouch, Rethinking Section 2702, 2 Fla. Tax Rev. 99 (1994) 297

PART VI: GENERATION-SKIPPING TRANSFERS 303

Jerome Kurtz & Stanley S. Surrey, Reform of Death and Gift Taxes: The 1969 Treasury Proposals, the Criticisms, and a Rebuttal, 70 Colum. L. Rev. 1365 (1970) 304

David Westfall, Revitalizing the Federal Estate and Gift Taxes, 83 Harv. L. Rev. 986 (1970) 307

Gilbert Paul Verbit, Annals of Tax Reform: The Generation-Skipping Transfer, 25 UCLA L. Rev. 700 (1978) 309

Jonathan G. Blattmachr & Jeffrey N. Pennell, Using "Delaware Tax Trap" to Avoid Generation-Skipping Taxes, 68 J. Tax'n 242 (1988) 314

John T. Gaubatz, A Generation-Shifting Transfer Tax, 12 Va. Tax Rev. 1 (1992) 317

Leonard Levin & Michael Mulroney, The Rule Against Perpetuities and the Generation-Skipping Tax: Do We Need Both?, 35 Vill. L. Rev. 333 (1990) 321

Howard E. Abrams, Rethinking Generation-Skipping Transfers, 40 Sw. L.J. 1145 (1987) 325

PART VII: INTEGRATING THE ESTATE AND GIFT TAXES 333

A. Responses to the Dual Tax System 333

U.S. Treasury Department, Federal Estate and Gift Taxes: A Proposal for Integration and for Correlation With the Income Tax (1947) 334

American Law Institute, Federal Estate and Gift Taxation (1969) 338

Charles L.B. Lowndes, Common Sense Correlation of the Estate and Gift Taxes, 17 U. Fla. L. Rev. 507 (1965) 340

U.S. Treasury Department, Tax Reform Studies and Proposals, 91st Cong., 1st Sess. (1969) 344

Jerome Kurtz & Stanley S. Surrey, Reform of Death and Gift Taxes: The 1969 Treasury Proposals, the Criticisms, and a Rebuttal, 70 Colum. L. Rev. 1365 (1970) 347

B. Reforming the "Unified" Tax System 349

U.S. Treasury Department, Tax Reform for Fairness, Simplicity, and Economic Growth, Report to the President (1984) 350

Joseph Isenbergh, Simplifying Retained Life Interests, Revocable Transfers, and the Marital Deduction, 51 U. Chi. L. Rev. 1 (1984) 354

Theodore S. Sims, Timing Under a Unified Wealth Transfer Tax, 51 U. Chi. L. Rev. 34 (1984) 357

Alvin C. Warren, Jr., The Timing of Taxes, 39 Nat'l Tax J. 499 (1986) 361

Harry L. Gutman, A Comment on the ABA Tax Section Task Force Report on Transfer Tax Restructuring, 41 Tax Law. 653 (1988) 363

Paul B. Stephan III, A Comment on Transfer Tax Reform, 72 Va. L. Rev. 1471 (1986) 369

Joseph M. Dodge, Redoing the Estate and Gift Taxes Along Easy-to-Value Lines, 43 Tax L. Rev. 241 (1988) 373

PART VIII: ALTERNATIVE TAX SYSTEMS 381

A. An Accessions Tax 381

William D. Andrews, The Accessions Tax Proposal, 22 Tax L. Rev. 589 (1967) 381

Edward C. Halbach, Jr., An Accessions Tax, 23 Real Prop., Prob. & Tr. J. 211 (1988) 391

B. An Income Tax 398

John K. McNulty, A Transfer Tax Alternative: Inclusion Under the Income Tax, 4 Tax Notes 24 (1976) 398

Lawrence Zelenak, Taxing Gains at Death, 46 Vand. L. Rev. 361 (1993) 400

Joseph M. Dodge, Further Thoughts on Realizing Gains and Losses at Death, 47 Vand. L. Rev. 1827 (1994) 404

Charles O. Galvin, To Bury the Estate Tax, Not To Praise It, 52 Tax Notes 1413 (1991) 408

C. A Consumption Tax 409

Edward J. McCaffery, The Uneasy Case for Wealth Transfer Taxation, 104 Yale L.J. 283 (1994) 409

Anne L. Alstott, The Uneasy Liberal Case Against Income and Wealth Transfer Taxation: A Response to Professor McCaffery, 51 Tax L. Rev. 363 (1996) 417

Eric Rakowski, Transferring Wealth Liberally, 51 Tax L. Rev. 419 (1996) 426

Douglas Holtz-Eakin, The Uneasy Empirical Case for Abolishing the Estate Tax, 51 Tax L. Rev. 495 (1996) 435

D. A Wealth Tax 441

George Cooper, Taking Wealth Taxation Seriously, 34 Rec. Ass'n B. City N.Y. 24 (1979) 441

Daniel Q. Posin, Toward a Theory of Federal Taxation: A Comment, 50 J. Air L. & Com. 907 (1985) 451

Lester C. Thurow, Net Worth Taxes, 25 Nat'l Tax J. 417 (1972) 453

Barry L. Isaacs, Do We Want a Wealth Tax in America?, 32 U. Miami L. Rev. 23 (1977) 458

Gilbert Paul Verbit, Taxing Wealth: Recent Proposals from the United States, France, and the United Kingdom, 60 B.U. L. Rev. 1 (1980) 463

E. A Bequeathing Power Succession Tax 472

William Vickrey, Agenda for Progressive Taxation (1947) 472