Defined Value Transactions
A 2-Part Program

We have turned to two of the nation’s renowned estate planning professionals, L. Paul Hood, Jr., JD, LL.M. and Robert Keebler, CPA/PFS, MST, AEP (Distinguished) to put together this very timely presentation entitled “Defined Value Transactions: A 2-Part Program”. In this 2-part program Paul and Bob will review defined value gift/sale clauses after the fifth circuit affirms Nelson, and the best practices in drafting, executing, and reporting defined value gifts/sales documents.

PART 1: THOSE TEN MISSING WORDS – DEFINED VALUE GIFT/SALE CLAUSES AFTER THE FIFTH CIRCUIT AFFIRMS NELSON

In this 95-minute program, longtime co-presenters Bob Keebler and Paul Hood will extensively analyze the Fifth Circuit’s recent affirmance (No. 20-61068 (5^th Cir. Nov. 3, 2021)) of the Tax Court’s opinion in Nelson v. Comr., T.C. Memo 2020-81 and the lessons to all planners who use defined value gift/sale clauses. They will also review all of the important cases and rulings involving defined value transfers beginning with the Fourth Circuit’s Procter decision in 1944 and going up to the present with the Wandry and Nelson Fifth Circuit decisions.

In particular, Bob and Paul will cover:

• What Bob and Paul believe are defined value strategies that will and won’t work.

• Importance of proper reporting of a defined value transfer

• 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 clause

• 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

PART 2: BEST PRACTICES IN DRAFTING, EXECUTING AND REPORTING DEFINED VALUE GIFTS/SALES DOCUMENTS

In this 92-minute drafting boot camp focusing on drafting, executing, and reporting defined value gifts/sales, long-time co-presenters Bob Keebler and Paul Hood (who has written articles and made many presentations about every single defined value gift decision and ruling since the Tax Court’s 2003 decision in McCord v. Comr.) will build on their prior defined value transfers program and are going to focus like a laser beam on the best practices drafting of defined value gifts, defined value sales and defined value gift/sale documents, as well as a review of practical and ethical issues surrounding confection of a defined value gift transaction, including:

• What is a Defined Value Clause?

• Purpose of the Defined Value Clause: Altruism Stops at the Gift Tax County Line!

• Express Authorization for Formulae in the Internal Revenue Code and the Treasury Regulations

• Types of Defined Value Clauses

• Best Practices for Wandry -Type Transaction

• Suggested Steps for a Transaction Involving a Charity

Bob and Paul will review separate forms supplied by us, clause-by-clause, for the following Defined Value documents:

• Gift Document

• Sale Document

• Pledge Agreement

• Gift/Sale Document

• Tax Return/Financial Statement/Loan Application Language Suggestions

Your purchase includes: Downloadable PDF handout materials and MP3 audio recordings. A PDF transcript may be added on for an additional fee during the checkout process.