In my March 31 posting, I discussed the Wandry decision of the Tax Court. The decision was a very favorable determination that approved of a formula clause to limit the amount of a gift (and thus limit exposure to gift tax) upon an IRS redetermination of value of the gifted property. While formula gifts have withheld scrutiny in other decisions, those cases involved more complex planning involving charitable lids or disclaimers – Wandry greatly simplifies the methodology involved to have an effective clause.
Notice of appeal was filed in the Tax Court on August 28, with the appeal going to the 10th Circuit Court of Appeal. Look for more here as soon as a decision is out.