[xlib]

Hard to imagine it's that simple to evade the death tax. I would think that creating the corporation, and giving shares to the heirs, would itself be a taxable event (possibly at a lower rate.) But I'm no expert--is anyone reading this who is?

[summer]

xlib, JD86 is an expert.

[Ranxerox]

I'm no expert, but this is essentially true. The family could have formed a Limited Liability Partnership, with the patriarch as the majority holder and the kids with a minority share and no controlling interest. Then when the patriarch died, the kids would assume the controlling interest, with no estate tax to pay.