Press Room

September 15, 2010

David Bradt to Speak at the American Bar Association

September 25, 2010 — ABA Section of Taxation and the Trust and Estate Law Division of the ABA Section of Real Property, Trust and Estate Law at the 2010 Joint Fall CLE Meeting, September 23-25, 2010 in Toronto, ON.

Donee Selection and Practical Considerations Under Petter Formula Allocation Clauses

This program will cover the following topics:

1) Inter-family sale and gift transactions will increase following recent taxpayer victories using formula allocation clauses. These cases provide a roadmap to mitigate the gift tax risk associated with such transactions. Sale transactions are also likely to increase if a 10-year minimum GRAT term is imposed.

2) Alternatives for the “donee” of the excess value under a Petter type of formula allocation clause, which include among others a public charity, donor advised fund (DAF), private foundation, zeroed out CLAT, inter vivos QTIP, GRAT, defective gift trust and spouse.

3) A review of issues and requirements of a DAF to participate in a transaction, presented by representatives from two large DAFs.

4) A review of other practical considerations, including the risk of IRS challenge and the exercise of ownership rights and tax reporting during the determination period.

Richard S. Franklin, Law Office of Virginia A. McArthur, Washington, DC
David Bradt, WTAS, McLean, VA
Karla D’Alleva Valas, Fidelity Investments Charitable Gift Fund, Boston, MA
John W. Porter, Baker Botts LLP, Houston, TX

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