Structuring Defined Value Clauses in Trust Transfers: Formula Allocations and Price Adjustment Clauses
A live 90-minute CLE/CPE video webinar with interactive Q&A
This CLE/CPE 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 panelist will provide specific guidance on making formula allocations to withstand IRS scrutiny, identify conditions in transfer structures that trigger gift tax imposition, and discuss recent developments impacting the use of these formula clauses in trusts and estate planning.
Outline
- 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
Benefits
The panelist 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
- Engaging the right valuation expert to avoid resizing of transfers
- Reviewing valuations for reports
Faculty
Dhar Kalsi, CPA, ABV
Partner, Valuation Advisory Services
CohnReznick
Mr. Kalsi provides valuation advisory services for gift and estate tax, financial reporting, litigation support,... | Read More
Mr. Kalsi provides valuation advisory services for gift and estate tax, financial reporting, litigation support, strategic planning, and other purposes. His focus includes preparing valuations of debt and equity investments in partnerships engaged in the business of developing real estate projects financed with tax credits (e.g., Low Income Housing Tax Credits – IRC Section 42, New Market Tax Credits -IRC Section 45D, Historic Tax Credits – IRC Section 47, etc.).
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Lawrence M. Lipoff, CPA, TEP
Director
CohnReznick
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private... | Read More
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high-net-worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely held businesses in the areas of income tax planning and compliance, estate planning and administration services, as well as family structure consulting. Through many years in practice, he synthesized the work of various related professionals, and their firms integrate several planning strategies into solutions that maximize value. Mr. Lipoff is a frequent lecturer and author of articles published through professional forums on topics including domestic and international - estate planning and fiduciary income taxation including constructive attribution rules for foreign trusts, Forms 3520 & 3520-A, Graegin Loans, business succession, generation-skipping transfers, Chapter 14 and carried interest estate planning for private investment fund principals, preferred freeze partnerships, and private placement life insurance.
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Cannot Attend May 1?
Early Discount (through 04/04/25)
You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.