ARTICLE: Estate and Trust Distributions of Property in Kind After the Tax Reform Act of 1984 Skip over navigation
LexisNexis® Browse Law Reviews and Treatises
Skip over navigation
Sign in with your® ID to access the full text of this article.
Order the full text of this article if you do not have a® ID.
US $22.00 (+ tax)

Copyright (c) 1985 New York University School of Law
Tax Law Review

ARTICLE: Estate and Trust Distributions of Property in Kind After the Tax Reform Act of 1984

Winter, 1985

40 Tax L. Rev. 449





One of the present authors has written before about the taxation of estate distributions in kind, first in an article that appeared in this journal 17 years ago, 1 and again in a treatise published in 1970. 2 The passage of time, refinements and changes in the law, and the need to consider trusts as well as estates require this article. We do not simply revisit or revise. Our major focus is to identify and explain the sweeping impact of the Tax Reform Act of 1984 3 on estate and trust transfers and distributions of property in kind.

The earlier article and treatise on this subject describe an array of distortions that resulted under prior law. 4 Prior law (1) permitted gain lurking in property distributed to a beneficiary to escape tax; (2) effected a wastage of potential losses with respect to distributions of economically depreciated property to a beneficiary; and (3) caused the recapture rules of sections 1245 and 1250 to interact in a distorted way with the computation of distributable net income (DNI). These and other distortions are now history, having been eliminated by the new statute. The key provision is section 643(e). 5

Basic Concepts

When an estate or trust distributes cash to its beneficiaries, the amount is gross income to them and is deductible by the estate or trust, within limitations and characterization rules applied with reference to the entity's DNI. If the cash is paid pursuant to a specific bequest, in ...
If you are interested in obtaining a® ID and Password, please contact us at 1-(800)-227-4908 or visit us at
Search Documents
eg., Environmental Insurance Coverage Under the Comprehensive General Liability Policy

Lexis® Web - The only search engine that delivers free web content specifically from legal sites validated by LexisNexis® attorney editors and includes tools for faster research and more relevant results.

LexisNexis Store
Research Now - Go to
Connect the Dots - Free 1 hour webcast
Share. Network. Discover. - Go to LexisNexis Communities