August 2010

Partnerships May Aid Your Estate, but the I.R.S. Is Watching

From NYTimes.com.

The wealthy have long had two big concerns: making sure their family’s interests remain in sync when they’re gone and protecting their estate from a high tax bill.

Yet with the wealthy reviewing their plans in this year of estate tax limbo, many who had merged those two concerns into family limited partnerships are now thinking about the risks they may be leaving their heirs.

Family limited partnerships are primarily used to reduce the size of an estate for tax purposes. What makes them so attractive is that the value of whatever is in the partnership — buildings, a business, publicly traded stock — can be discounted because selling shares in a partnership to outsiders is difficult since all the partners are related.

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.