Donor-Advised Funds: The Good, The Bad And The Ugly
When I spoke with Professor Madoff, she did not dispute that there were positive aspects to donor advised funds, but the focus of the article is on the downside. It is something that would never have occurred to me. Private foundations are required to make distributions every year, but there is no such requirement for donor advised funds. So apparently a lot of people are, in effect, advising the sponsors to just sit on their assets.
Deep Discount From Asset Values In Family Limited Partnership Valuation
The Ninth Circuit has directed us to revise our valuation of the 41% limited-partner interest. The first revision we make is to change the weight we accorded the value of the partnership’s assets. In our first opinion, we assigned a 25% weight to this value and a 75% weight to the present value of the cashflows from the continued operation of the partnership. The Ninth Circuit has instructed us to “recalculate the value of the Estate based on the partnership’s value as a going concern.” In our view, the going-concern value is the present value of the cashflows the partnership would receive if it were to continue its operations. Therefore, we implement the Ninth Circuit’s instruction by changing the weight we accord the present value of cashflows from 75% to 100%. This causes our adjusted valuation of the 41% limited-partner interest to be entirely based on the partnership’s value as a “going concern”.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.