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Estate of Roger D. Malkin et al. v. Commissioner; T.C. Memo 2009-212; September 16, 2009

The Facts:                                           

Mr. Roger Malkin was the chairman and chief executive officer of Delta & Pine Land Co. (D&PL) from 1980 until his death in November of 2000.  During the time in which he was employed, Mr. Malkin accumulated more than 1,000,000 D&PL shares and options.  In 1997, Mr. Malkin decided he wanted to transfer approximately $16,000,000 worth of D&PL shares to his children.  However, he did not want his children to sell the shares after they had received them.  Mr. Malkin discussed this with his financial planner and an estate planning expert from Arthur Andersen.  After a series of conference calls, Mr. Malkin decided to form an FLP to hold the D&PL shares and two trusts, one for each child, to hold limited partnership interests in the FLP. [...]

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David E. Heckerman et ux. V. United States; No. 2:08-cv-00211, July 27, 2009

The Facts:                                             

During the fall of 2001, David Heckerman and his wife (“Mr. and Mrs. Heckerman” or “the Heckerman’s”) sought advice regarding setting up a plan to pass along property to their two minor children that would make the children both “work for their money” and “not trigger a gift tax”.  The Heckerman’s spoke with several legal and financial advisors and eventually drew up a plan that involved creating LLC entities, transferring property and cash into these LLC entities, and then transferring minority shares to trusts established for the children. [...]

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Court Case Update – Litchfield v. IRS

Published on 01 March 2010 by in News

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Estate of Marjorie deGreeff Litchfield, Deceased, George B. Snell and Peter deGreeff Jacobi, Coexecutors vs. Commissioner of Internal Revenue Service, Respondent, T.C. Memo 2009-21, January 29, 2009.

The Facts: 

Marjorie deGreeff Litchfield (“Ms. Litchfield”) died on April 17, 2001.  Her husband had previously died back in 1984.  The estate for Ms. Litchfield elected the alternate valuation date of October 17, 2001 (“the valuation date”).  As of the valuation date, Ms. Litchfield owned, among other assets, minority equity interests in two closely held family-owned corporations; Litchfield Realty Co. (LRC) and Litchfield Securities Co. (LSC). [...]

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Estate of Valeria M. Miller, Deceased, Virgil G. Miller, Executor, Petitioner vs. Commissioner of Internal Revenue, Respondent, T. C. Memo 2009-119, May 27, 2009.

 The Facts:                                             

Valeria M. Miller married her husband Mr. Miller in 1938 and they remained married until his death on February 2, 2000.  Mr. and Mrs. Miller had four children; Virgil G., Gordon, Donald and Marcia.  Mr. Miller had worked as an architect until the time he retired in 1974 at the age of 60.  After his retirement, Mr. Miller spent a significant amount of time managing his family’s investments using his own personally developed method for charting stocks.  Mr. Miller kept handwritten records of all of his investment activity over the course of 26 years until his death at the age of 86. [...]

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