Structuring Defined Value Clauses in Trust Transfers: Formula Allocations and Price Adjustment Clauses
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE/CPE webinar will provide estate planning counsel and advisers with a comprehensive and practical guide to structuring defined value formula clauses to avoid gift tax consequences on asset transfers. The panel will provide specific guidance on making formula allocations to withstand IRS scrutiny and identify conditions in transfer structures that trigger gift tax imposition.
- Types of defined formula value approaches
- Formula allocation clause based on a subsequent agreement of involved parties
- Formula allocation clause based on final values as determined for gift tax purposes
- Price adjustment clauses
- Impact of Belk holding (4th Cir. 2014)
- Defined value clauses on IRS 2016-17 Priority Guidance Plan
- Exercising substitution powers using a defined value clause
- Traps to avoid
The panel will review these and other noteworthy issues:
- What are the grounds for IRS challenges of defined value clauses?
- What types of defined value clauses have failed to withstand IRS challenges?
- How to best structure defined value clauses
- How to structure defined value clauses involving non-taxable transfers other than to public charities
Bryan Cave Leighton Paisner
Ms. Gabbard’s practice focuses on privately held businesses, high net worth clients, and charitable... | Read More
Ms. Gabbard’s practice focuses on privately held businesses, high net worth clients, and charitable organizations. Her areas of practice include all aspects of income, capital gains, gift and estate tax planning, charitable planning, advanced wealth and business succession planning, capital gains tax deferral techniques, acquisition, sale and liquidity planning, private corporate structuring, asset freeze techniques, family office planning, insurance planning, trust tax planning, and trust administration.Close
L. Paul Hood, Jr.
Paul Hood Services
Mr. Hood is a former estate planning and tax attorney in Louisiana. He frequently speaks and writes on estate planning,... | Read More
Mr. Hood is a former estate planning and tax attorney in Louisiana. He frequently speaks and writes on estate planning, planned giving and business valuation issues. He is author of the book, Buy-Sell Agreements (Self-Counsel Press 2013) and has co-authored texts on business valuation as well as estate planning for blended families. He is also co-author of an upcoming work on estate planning tools for modern families.Close