Case Summaries Nelson v. Commissioner, T.C. Memo. 2020-81 – Valuation: Formula Transfers, Minority and Marketability Discounts, Multi-Tiered Discounts

Jul 07, 2020
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We recommend that you download the Nelson v. Commissioner, T.C. Memo. 2020-81 document prior to watching, as Steve Akers and Ron Aucutt refer to it throughout the video.


In this Estate Planning Case Summary and video, Nelson v. Commissioner, T.C. Memo. 2020-81, Steve and Ron, share how the summary confirms an approach for valuing hard-to-value assets by transferring dollar amounts with the size of transferred interests determined by appraisals shortly after the transfers. The case addresses various interesting issues, including:

  • The transfers were not "defined value transfers" determined by values as finally determined for gift tax purposes.
  • Multi-tiered discounts were allowed in valuing interests in a partnership that, in turn, owned a minority interest in a holding company that owned various subsidiaries with operating businesses.
  • The court determined lack of control and lack of marketability discounts in order to value the transferred interests.
  • The overall result was a 70% victory for the taxpayer, compared to the IRS's asserted values.


About The Speakers

Stephen R. Akers
Senior Fiduciary Counsel
Steve serves as Chair of the Firm’s Estate Planning Committee and works closely with clients in the Southwest Region regarding their estate and trust planning issues.

Ronald D. Aucutt
Senior Fiduciary Counsel
Ron is responsible for working with clients and their advisors to develop practical and efficient wealth transfer plans and for guiding the firm on fiduciary issues.