Authors

H. Brice Graves

Some Differences Between Federal and Virginia Taxation in the Estate and Gift Tax Fields

Abstract

This article examines the distinct legal and practical approaches to estate and gift taxes under federal and Virginia law. It highlights that federal estate tax is levied on the decedent's right to transfer property, while Virginia's inheritance tax focuses on the beneficiaries' right to receive property, creating differences in tax basis, exemptions, and timing of taxation. The article explores specific issues like valuation dates, marital deductions, treatment of life insurance proceeds, and the taxation of property under powers of appointment, emphasizing administrative challenges in managing contingent interests. Additionally, the author discusses Virginia's gift tax, which parallels its inheritance tax in structure but differs from federal gift tax rules in aspects like lifetime exemptions, marital deductions, and treatment of joint property. The article concludes by suggesting potential benefits in aligning some state rules with federal regulations without compromising Virginia’s policy preferences.

Repository Citation

H. Brice Graves, Some Differences Between Federal and Virginia Taxation in the Estate and Gift Tax Fields, 1 Wm. & Mary L. Rev. 69 (1957), https://scholarship.law.wm.edu/wmlr/vol1/iss1/6