Structuring Defined Value Clauses in Trust Transfers: Formula Allocations and Price Adjustment Clauses
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will provide estate planning counsel 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 recent cases
- 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
L. Paul Hood, Jr., JD, LL.M, CFRE, FCEP
Paul Hood Services
A native of Louisiana (and a double LSU Tiger), Mr. Hood obtained his undergraduate and law degrees from Louisiana... | Read More
A native of Louisiana (and a double LSU Tiger), Mr. Hood obtained his undergraduate and law degrees from Louisiana State University and an LL.M. in taxation from Georgetown University Law Center before settling down to practice tax and estate planning law in the New Orleans area. He has taught at the University of New Orleans, Northeastern University, The University of Toledo College of Law and Ohio Northern University Pettit College of Law. Mr. Hood has authored or co-authored seven books and over 500 professional articles on estate, charitable and tax planning and business valuation. A frequent contributor to Leimberg Information Services since its inception, he is a highly sought after speaker and consultant because of his innate ability to see through the complexity and explain difficult and even boring subjects in understandable and entertaining language and mince no words in doing so. Mr. Hood is an author, speaker and consultant on tax, estate and charitable planning. He also is a Vice-President with Thompson & Associates, a charitable estate planning firm.Close