In Uncategorized on 03/23/2016 at 17:18

See my blogpost “Yes In Deed,” 7/15/12. Then read, and weep if you must, Bayne French and Christine French, 2016 T. C. Memo. 53, filed 3/23/16.

Judge Marvel has a word for the conveyancer, when dealing with the conservation easement.

State that the conservation easement deed embodies the entire agreement of the parties. Better still, drop the “good and valuable consideration” toxic boilerplate, and talk about how the grantors love the wide-open spaces and how they’re getting nothing but psychic satisfaction from the whole deal. Use the “no goods or services” language from Section 170(f)(8). Have grantor and grantee both sign and acknowledge.

Remember, without the “contemporaneous acknowledgment” from the donee, with all the magic language in it, no deduction.

Judge Marvel doesn’t even have to deal with whether Bayne and Chris actually owned what they claim they gave away, nor whether what they gave away (if anything) was worth what they claimed it was worth.

I’ll repeat what I said back in 2012, in the abovecited blogpost: “Note to dirt lawyers: Please don’t use boilerplate printed real estate forms for making a conservation easement. The old ‘ten dollars and other good and valuable consideration’ bargain and sale deed form, available at dime-store prices, might be good enough for a routine single-family house sale, but not for a big-time transaction with heavy-duty tax deductions on the table. Read the IRC; draft your language with great care. Have both grantor and grantee sign the deed. Use a proper integration clause.”

After Judge Marvel unloaded on Bayne and Chris, I wager someone is getting The Phone Call.


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