Julie A. Su v. Reliance Trust Co.
In this ESOP-related case, the court ruled that two experts of a former defendant can testify for the remaining defendants to the extent their testimony was not duplicative. The defendant’s motion to exclude testimony of the government’s (plaintiff’s) witness because the new FRE 702 rules were not followed was denied, as the court explained the new FRE 702 had not been violated.
U.S. District Court Allows Nonduplicative Testimony of Experts and Allows Testimony on Clarification of New FRE 702
In this ESOP-related case, the court ruled that two experts of a former defendant can testify for the remaining defendants to the extent their testimony was not duplicative. The defendant’s motion to exclude testimony of the government’s (plaintiff’s) witness because the new FRE 702 rules were not followed was denied, as the court explained the new FRE 702 had not been violated.
No Place for Asset Appraisal in Trust Dispute, Court Says
In trust dispute, appeals court affirms trial court’s exclusion of expert’s “asset appraisal and valuation,” finding business valuator’s approach for measuring damages was inconsistent with scope of the case, irrelevant, and not helpful to trier of fact.
Cartwright v. Jackson Capital Partners, Ltd. P'ship
In trust dispute, appeals court affirms trial court’s exclusion of expert’s “asset appraisal and valuation,” finding business valuator’s approach for measuring damages was inconsistent with scope of the case, irrelevant, and not helpful to trier of fact.
5th Circuit Ratifies 47.5% Discounts to FLP Asset Values
5th Circuit affirms district court findings that overall intent of widow was to establish a family limited partnership (FLP), despite funding but failing to finalize its formation; accordingly, the court upheld the 47.%% combined discounts applied to the ...
Keller v. United States
5th Circuit affirms district court findings that overall intent of widow was to establish a family limited partnership (FLP), despite funding but failing to finalize its formation; accordingly, the court upheld the 47.%% combined discounts applied to the ...
Tax Court Resolves ‘Mismatch’ Between FLP Values and Marital Deduction
On a motion for reconsideration, Tax Court finds no new evidence or rationale to reverse its prior opinion, which included the value of family limited partnership assets in the gross estate; it also found the estate was not entitled to claim the marital d ...
Well-Planned FLP Survives IRS Challenge
Tax Court excludes the value of family limited partnership assets from the decedent’s gross estate, finding that her desires to ensure an equal distribution of the assets to her heirs as well as manage the properties were legitimate, nontax reasons to tra ...
Tax Court Validates Defined Value Clause for Interfamily Transfers
Tax Court upholds defined value clause in transfers of family LLC interests, overruling IRS’s public policy concerns, among other arguments.
9th Circuit Permits Subsequent Events in Valuing Uncertain Claims
Ninth Circuit confirms that post-death events are relevant when valuing a disputed or contingent claim against an estate; subsequent events are irrelevant only when the claim is certain and enforceable.
Estate of Turner v. Commissioner (II)
On a motion for reconsideration, Tax Court finds no new evidence or rationale to reverse its prior opinion, which included the value of family limited partnership assets in the gross estate; it also found the estate was not entitled to claim the marital d ...
Wandry v. Commissioner
Tax Court upholds defined value clause in transfers of family LLC interests, overruling IRS’s public policy concerns, among other arguments.
Estate of Kelly v. Commissioner
Tax Court excludes the value of family limited partnership assets from the decedent’s gross estate, finding that her desires to ensure an equal distribution of the assets to her heirs as well as manage the properties were legitimate, nontax reasons to tra ...
Estate of Stone v. Commissioner
Tax Court holds transfer of woodlands to FLP outside reach of Section 2036(a); “bona fide sale” was present even though partnership conducted no business or investment activity, had no bank account, and caused no change in use or enjoyment of property.
Estate of Stone v. Commissioner
A husband and wife owned 740 acres of undeveloped woodland, which, on the advice of their attorney, they transferred to a family limited partnership (FLP). They each retained a 1% general partnership interest, but over the years began gifting limited part ...
Marshall Naify Revocable Trust v. United States
Ninth Circuit confirms that post-death events are relevant when valuing a disputed or contingent claim against an estate; subsequent events are irrelevant only when the claim is certain and enforceable.
Latest ‘Bad Facts’ FLP Case Emphasizes Poor Planning, Operations
Tax Court includes entire fair market value of FLP real estate assets in the gross estate, rejecting claims that protecting them against partition and ensuring son’s continued management role constituted legitimate, non-tax reasons for FLP.
Family LLC in Divorce: Error to Value Only Underlying Property
Trial court errs by valuing the husband’s minority interest in a family held limited liability corporation by reference to the underlying real property, when there was no evidence that the husband could access the property or its income.
‘Standard Form’ FLP Fails to Establish Nontax Purpose
Tax Court includes full value of family limited partnership assets in the gross estate after finding that their nature (passive investments in cash and marketable securities) provided no legitimate, nontax reason for their consolidation or management.
Estate of Liljestrand v. Commissioner
Tax Court includes entire fair market value of FLP real estate assets in the gross estate, rejecting claims that protecting them against partition and ensuring son’s continued management role constituted legitimate, non-tax reasons for FLP.
9th Circuit Upholds Defined Value Clause
9th Circuit upholds defined value, formula allocation clauses against IRS argument that they require a condition precedent—i.e., an IRS audit and/or determination of fair market value.
Estate of Turner v. Commissioner (I)
Tax Court includes full value of family limited partnership assets in the gross estate after finding that their nature (passive investments in cash and marketable securities) provided no legitimate, nontax reason for their consolidation or management.
Estate of Petter v. Commissioner (II)
Ninth Circuit upholds defined value, formula allocation clauses against IRS argument that they require a condition precedent—i.e., an IRS audit and/or determination of fair market value.
Tax Court Crafts Its Own Cost-to-Partition Approach in Valuing Fractional Interests
Tax Court rejects approaches by both IRS and taxpayer expert for valuing undivided half-interests in vacation home, ultimately concluding combined discount of 17% under weighted, partition and nonpartition scenarios.
Having Lost the War on Family LLC, IRS Loses the Battle on the Discounts
Tax Court applies step transaction doctrine to formation and funding of family LLC, and then applies taxpayer’s discounts for lack of control and marketability, in absence of IRS evidence regarding the same.