Law Office of
Robert J. Mintz
Exclusive Legal Representation For Your
Asset Protection Planning Needs
  • Asset Protection
  • Estate Planning
  • International Tax
  • Business Planning

Following FLP Formalities

You should note that the Family Limited Partnership, like all tax planning strategies, is likely to be attacked by the IRS if the requisite formalities are not properly followed. Although Congress has rejected attempts by the Administration to eliminate these benefits, those who claim highly aggressive discounts or establish the FLP in near death circumstances can anticipate some level of opposition. As a general rule, if you are using the FLP to achieve estate tax savings, make sure that:

  1. A credible appraisal is obtained to support the amount of the discount which is claimed.
  2. The documents are properly drafted.
  3. There is a sound purpose for the plan other than tax avoidance (such as asset protection or privacy).

The position that the IRS will take in estate tax matters concerning the Family Limited Partnership is set forth at:

http://www.irs.gov/pub/irs-utl/asg_penalties_family_limited_pships_finalredacted10_20_06.pdf

Complimentary New Book

New & Revised Edition
Asset Protection for Physicians and High-Risk Business Owners by Robert J. Mintz JD, LLM

Essential reading for every professional, business owner and potential deep-pocket lawsuit defendant.

Legal Services Request

Free Consultation:

Or call 760-758-4748 to schedule a phone consultation