Article on Hendrix Case

Wendy C. Gerzog (Professor of Law, University of Baltimore School of Law) recently published her article entitled, Defined Values Clauses and Fair Market Value, 134 Tax Notes (Nov. 13, 2012). The abstract of the article available on SSRN is below: 

In Hendrix the Tax Court considered the issues of whether defined value clauses were the result of arm’s-length transactions and whether they were void as against public policy. The underlying dispute was whether the taxpayers’ transfers of the John H. Hendrix Co. stock were valued at fair market value. With a decision favoring the taxpayers, the defined value clauses in both McCord and Hendrix impede the accurate valuation of taxable gifts to family members and of deductible charitable gifts.