Where it went right — How 4 FLPs recently passed muster with the Tax Court

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Abstract: The IRS continues to challenge the validity of family limited partnerships (FLPs). But this article looks at one case in which the U.S. Tax Court ruled that some IRS-challenged transfers related to FLPs were indeed valid. This article explains the reasoning behind the court’s decision — but, in so doing, illustrates why a qualified estate planning attorney and financial expert’s assistance is needed to properly draft, execute and defend any such partnership. Citation: Estate of Beatrice Kelly v. Commissioner, No. 24783-08, March 19, 2012 (T.C. Memo. 2012-73)