McCord Teleconference Announced

The American Bar Association Section of Real Property, Probate and Trust Law and the ABA Center for Continuing Legal Education are sponsored a teleconference entitled Hot Topics in Estate Planning After McCord — New Life for Defined Value Clauses or the Same Old Rules? on October 10, 2006.

Here is a description of the program:

On August 22 the Fifth Circuit reversed a prior Tax Court ruling in its McCord v. Commissioner decision.  Many attorneys believe McCord is one of the most important estate planning cases that has been decided this year.

The McCord decision is important to estate planning attorneys because the court approved the use of a defined value clause to determine the extent of property transferred by gift (although some commentators would dispute this point). The ruling also approved reducing the gift’s value by the contingent estate tax liability if the donor dies within three years of the gift. 

So, does McCord create shockwaves or just ripples?

After listening to this program and reading the course materials, you will understand the implications of the McCord decision on defined value clauses and estate planning, including:

• How defined value clauses can be used safely
• When defined value clauses should be used
• How to draft defined value clauses
  Whether to base the formula on finally determined tax values or whether to use the formula approach that was used in McCord
• When post-gift events can be used in valuation
• How using net gifts can help your clients