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Tips From the Pros: Word Formulas That Don’t Work…and Those That Do

Charles A. Redd discusses the use of formula clauses in some recent cases and private letter rulings.

One of the most potent and useful tools in an estate planner’s toolbox is language by which property being gifted, sold, exchanged, swapped, disclaimed, appointed or distributed is precisely described in relation to its identity and value or just in relation to its value (formula language). Using formula language facilitates taking maximum advantage of, without exceeding, various tax-driven, dollar amount-limited exemptions and exclusions.

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