Wandering Far Afield with Defined Value Clauses

Abstract

The Wandry decision extends the application of defined value clauses beyond those family limited partnership cases that transfer any excess value to a charity. In Wandry, the Tax Court reads Procter narrowly and ignores the fundamental rationale of Robinette.

Keywords: Defined Value Clauses, gift tax, family LLC, FLP, Wandry, Procter, Robinette

JEL Classification: K34, H20, H24