Apportionment of the federal estate tax — Should wills and trusts have unified rules?

Ira Mark Bloom (Justice David Josiah Brewer Distinguished Professor of Law, Albany Law School) has recently published his article entitled Unifying the Rules for Wills and Revocable Trusts in the Federal Estate Tax Apportionment Arena: Suggestions for Reform, 43 Real Prop., Tr. & Est. L.J. 447 (2009).

Here is a summary of his article:

This article discusses unification in the area of federal estate tax apportionment. The author advocates for a change in mandatory laws that currently prohibit or limit a decedent’s options in changing default apportionment rules by revocable trusts. Virtually all states have adopted the principle of apportionment, including five states that have enacted the latest Uniform version, the 2003 Uniform Estate Tax Apportionment Act. The author notes that American law has a long way to go if revocable trusts are to be placed on an equal footing with wills. Traditionally, only wills could be used to change default rules on federal estate tax apportionment, and this continues to be the rule in many states. Additionally, the author notes that conflict of laws issues further complicate the area of federal estate tax apportionment.