Need a fruitful idea for your estate plan? Conditions are ripe for an FLP
Abstract: Family limited partnerships (FLPs) have survived the latest wave of estate tax legislation quite handily. In fact, for those managing estate plans, conditions are ripe to seriously consider an FLP once again. This article explains how FLPs work, the importance of obtaining an independent asset appraisal, and how discounts for lack of control and marketability are applied. But tax law that expires at the end of 2012 means that the time is now to consider if an FLP is advantageous. A sidebar emphasizes that it’s important to avoid abusive business practices in an FLP.