No Gain at Death

In a 2002 article,¹ we examined at length the income-tax effects of the termination of a grantor trust by reason of the death of the grantor in the context of an installment sale.² Acknowledging then that the law was unsettled, we considered the plausibility of various approaches. Still, we reached firm conclusions about two critical issues: first, that gain is not recognized at the time of the grantor's death; and second, that the income in respect of a decedent (IRD)