Skip navigation

Avoid FLPs

The most important element in determining gift and estate liability is the value of the asset being transferred. To reduce that value, estate planners create family limited partnerships (FLPs) and family limited liability companies (LLCs). The theory: Because the donee or legatee now has only a noncontrolling interest in the asset a closely held, not readily marketable entity his interest in it is

The most important element in determining gift and estate liability is the value of the asset being transferred. To reduce that value, estate planners create family limited partnerships (FLPs) and family limited liability companies (LLCs). The theory: Because the donee or legatee now has only a noncontrolling interest in the asset — a closely held, not readily marketable entity — his interest in it is worth less. Values have been discounted by up to 60 percent.

ARTICLE ACCESS REQUIRED

Please Log in if you are currently a Trust&Estates subscriber, or select DAYPASS for our new 24 hour access (nominal fee required).


If you are interested in unlimited article access for one year, please select Annual Subscription below.

TAGS: Archive
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish