Printer Friendly

FLPs and Sec. 2036(a).

In Albert Strangi, 5th Cir., 7/15/05, the Fifth Circuit affirmed a Tax Court decision (TC Memo 2003-145) that assets transferred to a family limited partnership (FLP) were includible in the estate under Sec. 2036(a)(1). For details, see Tax Trends, "Taxpayer Loses FLP Appeal on Retained Rights," TTA, September 2005, p. 574.

This case continues to serve as a reminder of what not to do with a FLP--retain actual possession or use of property (without reimbursement) after the transfer; make improperly planned distributions; and pay personal expenses. These factors and many others are highlighted in the AICPA Tax Division's Trust, Estate, and Gi8 Tax Technical Resource Panel's Checklist of Issues to Consider in Yearly Administration of Family Limited Partnerships, at efds63xigo24sd2vvdcmjo5ccaadqbcko gemnvarp156u7gavcxplevahf7r2wqupq2tt k44e7fsuo/2036checlistkeyguidedonec.doc.
COPYRIGHT 2005 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:COURT DECISIONS
Author:Laffie, Lesli S.
Publication:The Tax Adviser
Date:Oct 1, 2005
Previous Article:Roth Sec. 401(k) prop. reg. comments.
Next Article:Energy-efficient buildings.

Related Articles
FLPs as estate planning tools.
Sec. 2036 and FLPs.
FLP issues and opportunities.
Significant recent developments in estate planning.
FLP's full value included in estate.
Lessons of Thompson and Kimbell.
FLP planning after Strangi, Kimbell and Thompson.
FLPs v. Tax Courts: Bongard case highlights Family Limited Partnership challenges.
Bongard: tax court incorrectly expands Sec. 2036(a)'s application.
Est. of Strangi finally settled.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters