Should your clients consider an FLP?
Abstract: Family limited partnerships (FLPs) have long been challenged by the IRS as invalid. But the many court cases involving FLPs can provide valuable insight into how to craft one that withstands scrutiny. This article covers such practices as showing that assets have been transferred in a bona fide sale for adequate and full consideration and following the terms of the FLP’s operating agreement. A sidebar discusses possible new FLP guidance.