Estate Planning

FLP Gift Discounts Alive and Well - for Now

By Gregory Herman-Giddens

In the recent case of Estate of Valeria M. Miller v. Commissioner; T.C. Memo. 2009-119; No. 5207-07 (27 May 2009), the U.S. Tax Court allowed a 35% discount for gifts of family limited partnership interests.  No discount was permitted for the FLP interest owned by the decedent at her death.

This case shows that a properly planned and executed family limited partnership or limited liability company is still a very effective way to pass on wealth to younger generations.  However, Obama's tax proposals would do away with such discounts in most cases.

Click here for a summary and the full text of the case, thanks to NC State's GiftLaw eNewsletter.

Full post as published by North Carolina Estate Planning Blog on June 01, 2009 (boomark / email).