CLE Course Details

GRAT and Valuation Planning After CCA 202152018: What Practitioners Need to Know

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Price: $55
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  • Description

    The CCA 202152018, released at the end of 2021, addresses the valuation challenge regarding the consideration that should be given to a potential sale when valuing an asset. Its impact on grantor retained annuity trusts (GRATs) and how an appraiser valuates the implications of a potential sale from no sale, conversations with buyers, letters of intent, binding contracts and so forth across the continuum.

    The recent changes place a possible sale fairly close to an actual sale in the procedure so that it is impossible to ignore leading the IRS to extend the reasoning in the Atkinson v. Commissioner, 115 T.C. 26, 32 (2000), aff’d, 309 F.3d 1290 (11th Cir. 2002) and held that the valuation was incorrect to such a degree that the GRAT annuity was not a qualified annuity interest as per Code Section 2702.

    This resulted in the entire value of the property involved to be classified as a deemed gift. This CLE course will explain what this means to the use of GRAT’s as spillover receptacles in a defined value mechanism and what the CCA means with regards to valuations in general.

    The course will review steps and strategies for practitioners and the implications for a broader application of the Atkinson principles to GRAT’s, CLT’s, CRT’s and other valuations. The course will explain how the principles might apply to penalties as well as offer a detailed discussion and analysis of the CCA.

  • Instructor Bio

    Martin Shenkman

    Martin M. Shenkman, CPA, MBA, PFS, AEP (distinguished), JD, is an attorney in private practice in Paramus, New Jersey and New York City. Practice concentrates on estate and tax planning. He is the author of 42 books and more than 1,000 articles. He is active in many charitable causes and founded which educates professional advisers on planning for clients with chronic illness and disability. He has a Bachelor of Science degree from Wharton School, with a concentration in accounting and economics, an MBA from the University of Michigan, with a concentration in tax and finance, and a law degree from Fordham University School of Law.

    To learn more about Marty visit his website

    Jonathan Blattmachr

    Mr. Blattmachr is a Principal in ILS Management, LLC and a retired member of Milbank Tweed Hadley & McCloy LLP in New York, NY and of the Alaska, California and New York Bars. He is recognized as one of the most creative trusts and estates lawyers in the country and is listed in The Best Lawyers in America. He has written and lectured extensively on estate and trust taxation and charitable giving.

    Mr. Blattmachr graduated from Columbia University School of Law cum laude, where he was recognized as a Harlan Fiske Stone Scholar, and received his A.B. degree from Bucknell University, majoring in mathematics. He has served as a lecturer-in-law of the Columbia University School of Law and is an Adjunct Professor of Law at New York University Law School in its Masters in Tax Program (LLM). He is a former chairperson of the Trusts & Estates Law Section of the New York State Bar Association and of several committees of the American Bar Association. Mr. Blattmachr is a Fellow and a former Regent of the American College of Trust and Estate Counsel and past chair of its Estate and Gift Tax Committee. He is author or co-author of five books and more than 400 articles on estate planning and tax topics.

    Among professional activities, which are too numerous to list, Mr. Blattmachr has served as an Advisor on The American Law Institute, Restatement of the Law, Trusts 3rd; and as a Fellow of The New York Bar Foundation and a member of the American Bar Foundation.

    Scott Nammacher

    Scott is a Senior Managing Director of Empire Valuation Consultants, where he has worked since 1992. He is an Accredited Senior Appraiser (ASA) of the American Society of Appraisers and a Chartered Financial Analyst® (CFA) Charterholder.

    He has extensive experience in financial consulting, business valuations and acquisitions/divestitures. Scott spent six years doing acquisitions, divestitures, special financing and general financial consulting for PepsiCo and Marigold Enterprises, a boutique management consulting and leveraged buyout firm. His background also includes experience with Arthur Andersen & Co., where he managed equity, debt, warrant/option, NOL and intangible asset valuations, along with general financial consulting engagements.

    Scott has valued a wide variety of publicly and privately held companies for acquisitions, share repurchases, estate and gift tax reporting, recapitalizations and general corporate planning purposes. He has developed business plans and financing packages, and has been involved in completed transactions totaling over $2.0 billion. Scott has also been involved in the valuation of several hundred hedge and P/E fund interests, including carried interests and related derivatives. He has also valued entertainment and artistic-related assets and interests, from copyrights of most types and profit participation interests to music libraries and other royalty-related assets.

    Scott has testified as an expert witness in U.S. Tax Court, U.S. Bankruptcy Court, and the Superior Court of Connecticut; has acted as a valuation consultant to the Superior Court of New Jersey; and has been involved in shareholder disputes in New York, New Jersey, Delaware and Louisiana. He has served as an expert witness in the U.S. District Court of the Eastern District of Wisconsin regarding high yield bond portfolio litigation. He has also lectured on various business and warrant valuation topics (including speeches at national and chapter level conferences), private equity/hedge fund valuations and high yield bonds before various organizations around the country.

    Scott co-authored a book, Investing in Junk Bonds; Inside the High Yield Debt Market, John Wiley & Sons, New York, New York, 1987 (including a Japanese translation published in 1988), and several articles on junk bonds. He also received the prestigious "Graham & Dodd Scroll Award" from the Financial Analysts Journal, for outstanding financial writing related to an article published as a cover story in a magazine.