Ron Aucutt, co-chair of the firm’s Private Wealth Services Group, was quoted in a
Bloomberg BNA article
about a drop in the effective estate tax rate for returns filed in 2016.
The Oct. 11 story reported that Internal Revenue Service data for 2016
returns showed net estate tax payments of $18.3 billion by 5,219 estates
with a gross value of $107.8 billion for an effective tax rate of about 17
percent. That’s 2 percentage points less than the effective 2015 estate tax
rate, the story said.
A decline can result from several factors, Aucutt told Bloomberg BNA. Deductions such as the marital deduction can
fluctuate from year to year, depending on whether a deceased spouse is the
first or the second of a married couple to die.
Also, effective tax rates calculated using gross estimate values can be
misleading because reducing the size of the gross estate is part of estate
planning, the story noted.