Learn from Jerome M. Hesch, John W. Porter, Alan S. Gassman and Christopher J. Denicolo the utility and nuances of valuation discounts with respect to wealth transfers, including factors to consider, and recent case law and IRS rulings regarding valuation discounts in the extent of estate planning.

John Porter represented the taxpayers in the recent Petter and Hendrix cases, where the valuation of assets did not result in gift tax because of successful valuation adjustment clauses.

During the 90 minute presentation, Mssrs. Porter, Hesch, Gassman and Denicolo will discuss effect and applicability of valuation discounts, and how to help avoid challenge by the IRS for use of appropriate planning procedures and valuation adjustment clauses. The speakers will share specific forms and trust language along with what their expectations are for success in the event of an IRS challenge. The speakers will also discuss what to expect in regards to future legislation that might curtail or eliminate the use of valuation discounts and wealth transfer strategies, and debate the pros and cons of using disregarded grantor trusts as a wealth transfer technique.

Discussion will also include coverage of the following topics:

• Use of valuation discount planning in gifting, installment sales and other wealth transfer techniques;
• How to help assure that valuation of entity interests will avoid IRS challenge;
• “Do’s and Don’ts” with respect to limited partnerships and limited liability companies in the context of valuation discounts;
• How valuation adjustment clauses can be used to reduce the likelihood of the success of an IRS challenge on the value of entity interests;
• Whether additional factors should be considered in addition to valuation discounts when making wealth transfers;
• The debate on whether the use of disregarded grantor trusts is an appropriate planning technique for certain clients; and
• Whether marital and/or charitable overflow provisions can be used in trusts and transfer documents in lieu of the more complicated and cumbersome valuation adjustment clauses that passed judicial muster.

The speakers will share applicable language for the major strategies discussed.

Please plan to join us for this presentation on Thursday, March 07, 2013, at 12:30 p.m. EST.

Educational Objectives

• Review pertinent recent estate tax planning cases and IRS Rulings, and discuss the evolution and possible direction of valuation adjustment clause law.
• Understand tricks and traps for the unwary relating to use of valuation discounts.
• Learn how valuation discounts can amplify the economic results of wealth transfers, and discuss other factors that contribute to successful wealth transfer strategies.
• Become conversant with the factors and nuances of valuation discounts case law, and factors and circumstances that are especially subject to IRS scrutiny.
• Evaluate potential options and approaches to value that affect the amount and applicability of valuation discounts.
• Understand the verbiage and nomenclature used in the realm of valuation discounts and wealth transfer strategies.
• Learn how the current estate tax law permits the use of valuation discounts, and how the future use of valuation discounts might be affected by additional tax legislation.

Course Level: Basic
Course Prerequisites: None
Delivery Method: Group Interact Live 

Alan Gassman, Gassman Law Associates, P.A. and John Porter, Baker & Botts LLP