In a recent case, the tax payer had a victory over an IRS challenge that sought to include the full value of FLP (family limited partnerships) assets into the decedent’s estate.
Family limited partnerships are often used to manage family businesses, real estate ventures, and even in some cases, publicly traded securities and other more liquid investments. They allow the transfer of assets (in some cases at a discount) while permitting a general partner to manage the assets.
When combined, with other techniques, such as asset protective trusts, they can be a powerful estate and asset protection strategy.
However, because in part of aggressive discounting of asset values and for other related reasons, these arrangements have been attacked by the IRS.
In the recent blog posted on www.paestateplannners.com I have linked to an anlysis of the new case and have given some short, and non technical points to remember when doing this type of planning.
When done correctly, family limited partnerships serve many business, and wealth preservation goals.
To learn more click Family Limited Partnerships – A Partial Victory for the Tax Payer.