Is the FLP safe? Valuation discounts could be on the chopping block

Description

Abstract: Family limited partnerships (FLPs), among the more popular estate planning tools, could be on the chopping block as Congress looks for ways to cover the budget deficit. Already, there’s talk of eliminating FLP valuation discounts. This article looks at the effectiveness of these discounts on an FLP’s limited partner interests and explains how to strengthen an FLP against IRS scrutiny. A sidebar discusses one case which upheld an FLP even though formalities hadn’t been concluded before the donor’s death. Estate of Keller, No. 10-41311, Sept. 25, 2012 (5th Cir.)