Defined Value Clauses: Evaluation and Practical Planning Advice

Michael E. Morden (Associate, Sonnenschein Nath & Rosenthal LLP) has published his article entitled “Reallocating” Wealth After Christiansen: A Fresh Look at Formula Clauses, 35 Am. C. of Trust & Estate Counsel 38 (Summer 2009).  The editor’s synopsis of the article is below:

There seems to be a trend in the courts toward recognizing defined value clauses, which allow taxpayers to make transfers with a limit on the amount of the taxable transfer.  This article discusses the two relevant cases, McCord and Christiansen, and offers practical planning suggestions in crafting defined value clauses.