Sometimes you want to drop the flag to transfer possession to another player, and the only way to do this seems to be going out of bounds. Is there an easier way to do this?
There is no way to drop the flag aside from dying or capturing it for your team. Dying also includes suicide.
You could kill yourself with explosive equiptment, or use the suicide option in the pause menu, but other than that and the way you said no there is not an easier way to do this.