Skip navigation

No Gain at Death

Even the Internal Revenue Service has now informally agreed: death does not trigger gain.

In a 2002 article,1 we examined at length the income-tax effects of the termination of a grantor trust by reason of the death of the grantor in the context of an installment sale.2 Acknowledging then that the law was unsettled, we considered the plausibility of various approaches. Still, we reached firm conclusions about two critical issues: first, that gain is not recognized at the time of the grantor's death; and second, that the income in respect of a decedent (IRD)

Subscription Options

Please Log in if you are currently a Trusts & Estates subscriber.

If you are interested in unlimited article access for one year, please select Annual Subscription below.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.