This note questions the propriety of allowing discounts to reflect lack of control where spouses enjoyed joint control over undivided interests in a majority block of shares. The issue is examined in light of existing case law and by reference to Washington community property law and federal estate taxation policies. The note concludes that, although Lee is not contrary to any explicit provision in the Internal Revenue Code, discounting a deceased spouse's share of a community owned majority block neither accurately reflects the degree of control its owners enjoyed nor effectively taxes wealth transfers at death.
Lisa S. Frye,
Federal Estate Tax—Valuation of a Deceased Spouse's Interest in Community Owned Stock—Estate of Lee v. Commissioner, 69 T.C. 860 (1978),
55 Wash. L. Rev.
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