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Making the Best Use of the $5.12 Million Exemption

Making the Best Use of the $5.12 Million Exemption
Product Code - TMA76
Speaker(s): Louis A. Mezzullo, Luce, Forward, Hamilton & Scripps LLP, John Porter, Baker Botts LLP, Alan S. Gassman
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Learn from Louis A. Mezzullo, John Porter and Alan S. Gassman: a “rubber meets the road” practical discussion of what they are actually doing for clients who wish to maximize use of the temporary $5,120,000 exemption in 2012.

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

This live webinar will include an in-depth discussion on what type of complex and simplified valuation adjustment clauses their clients are using, and will share specific forms and trust language along with what their expectations are for success in the event of an IRS challenge.

Discussion will also include coverage of the following topics:

  • Use of valuation discount planning in exemption gifting;
  • Whether to include spouses as beneficiaries of dynasty trusts;
  • Whether it is safe for spouses to have “reciprocal” dynasty trusts, and how to draft without running afoul of the reciprocal trust doctrine;
  • Whether the Grantor or Grantors can be a beneficiary of such trusts;
  • What jurisdictions are best if PLR 200944002 is to be relied upon and what may be wrong with Alaska, Delaware and certain other jurisdictions; 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 their forms for each major strategy.

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 the various alternatives for making best use of the temporary $5,120,000 gift tax exemption.
  • Become conversant with the primary rules, opportunities and limitations with respect to trust and wealth protection choices.
  • Evaluate potential jurisdictions in which to situs trusts, and the advantages of particular jurisdictions.
  • Understand the important considerations to address when drafting irrevocable trusts to receive large gifts in 2012, and the primary kinds of irrevocable trusts used for gifting and family wealth preservation.
  • Learn how the current estate tax law presents new opportunities for irrevocable trusts and other estate planning vehicles.

Louis A. Mezzullo, Luce, Forward, Hamilton & Scripps LLP, John Porter, Baker Botts LLP, Alan S. Gassman

Alan S. Gassman, J.D., LL.M. practices law in Clearwater, Florida. Each year he published numerous articles in publications such as BNA Tax & Accounting, Estate Planning, Trusts and Estates, and Steve Leimberg’s Asset Protection Planning Newsletters. Mr. Gassman is a fellow of the American Bar Foundation, a member of the Executive Council of the Tax Section of the Florida Bar, and has been quoted on many occasions in publications such as The Wall Street Journal, Forbes Magazine, Medical Economics, Modern Healthcare, and Florida Trend magazine. He is an author, along Kenneth Crotty and Christopher Denicolo, of the BNA Tax & Accounting book, Estate Tax Planning in 2011 and 2012, and an author of the book, Creditor Protection for Florida Physicians, published by Haddon Hall Publishing. He is the senior partner at Gassman Law Associates, P.A. in Clearwater, Florida, which he founded in 1987.