Fractional interest in estate tax turns on type, timing of gift
Estate of Adler v. Commissioner of Internal Revenue, T.C. Memo. 2-11-28, 2011 WL 300144 (U.S. Tax Court)(Jan. 31, 2010) A father owned a California ranch on more than 1,000 acres. In 1965, he gifted undivided one-fifth interests to his five children as tenants-in-common, reserving his own “full use and control” of the property throughout his [...]
New cases may knock out IRS opposition to defined value clauses
First, the U.S. Eight Circuit Court of Appeals decided Estate of Christiansen v. Comm’r (Nov. 2009), approving a formula disclaimer of estate assets that operated much like a defined value clause. Less than three weeks later, the U.S. Tax Court decided Estate of Petter v. Comm’r (T. C. Memo, Dec. 2009), which involved a defined [...]
Another big taxpayer victory: Federal court accepts appraiser’s 35% combined discounts for 94% family LP interest
The Murphy Oil Corp. grew from a small, family owned business into a multinational conglomerate, with over $2 billion in market cap. During the 1990s, the CEO and son of the founder set out to preserve his holdings and his investment philosophy for the benefit of his children. He formed a family limited partnership (FLP [...]
Share your thoughts..