Law Commons^™

New Reasons To Remember The Estate Taxation Of Reversions, F. Philip Manns

Faculty Publications and Presentations

Multiple law reform efforts are underway to reverse the no-implied-conditions-of-survivorship rule historically applying to future interests. Yet, whenever the NICS rule is reversed, a reversion arises in the transferor of the future interests—which reversion will take effect if the newly-implied conditions of survivorship fail—unless the NICS-rule-reversal reform itself negates that reversion. The most well-known NICS-rule-reversal reform, Uniform Probate Code section 2-707, negates the transferor’s reversion, but other reforms do not. When the reversion is not negated, complicated transfer tax issues arise. First, for gift tax purposes, the reversion must be valued, because the value of the reversion is subtracted in …