Family limited partnerships have been used for many years as a tool for the management and transfer of family wealth and business enterprises, and to fund certain planned giving vehicles such as charitable lead trusts. In recent years, however, the IRS has viewed and attacked their use as a valuation discount tool. The primary front in this battle is Estate of Strangi, which has been to Tax Court, appealed in the Fifth Circuit, remanded to Tax Court, and now awaiting appeal by the estate. In this article, Christopher P. Bray, a senior vice president with National City Bank, Naples, Fla., argues that the Fifth Circuit set up the Tax Court's second decision in Strangi to end the latter's questionable foray into the application of section 2036(a)(2) to family limited partnerships. Bray believes that with its alternative holding, the Tax Court provided a "monumental surprise" to the Fifth Circuit and expects the Fifth Circuit to reverse the Tax Court on every conclusion.  MORE »

In making a charitable bequest of an art collection, special consideration must be given to whether the imposition of restrictions may unexpectedly cause estate tax. In this article from the September 2002 issue of Estate Planning Journal, Philadelphia attorney Richard Fox reviews Ltr. Rul. 200202032 in which the IRS provides guidance regarding acceptable restrictions.  MORE »

A defined value gift is a formula gift that is tied to both the value the client wants to give and the value of the gift as finally determined for gift tax purposes. In this article, reprinted from the December 2001 edition of Estate Planning Journal, Louisiana attorney L. Paul Hood analyzes defined value gifts used in connection with charitable family limited partnerships in light of recent developments.  MORE »

The Dynasty Trust, in various forms, has been with us for nearly a century as a multi-generational wealth transfer planning vehicle. In this edition of Gift Planner's Digest, trust officer Judith K. Ruud, Esq. and husband, development officer William N. Ruud, Ph.D. review the Dynasty Trust and how it can be combined with the Charitable Lead Trust to provide long-term benefits for both family and charity.  MORE »

Last week, the PGDC published an article by Michael V. Bourland on the traditional and prudent uses of family limited partnerships. This week, Stephen R. Leimberg explores a variation on the family limited partnership -- one with a charitable twist. But is the "charitable" family limited partnership a prudent plan or an evil twin?  MORE »

Need a primer on family limited partnerships? In this edition of Gift Planner's Digest, Ft. Worth attorney Michael Bourland discusses 10 reasons to use family limited partnerships. Topics include valuation discounts -- navigating the Chapter 14 rules -- real and possible IRS challenges -- drafting, formation, and operation -- and how family limited partnerships can be used to facilitate charitable gifts.  MORE »

In this edition of Gift Planner's Digest, Kansas City, Missouri attorney Scott Blakesley provides an introduction to the basic concepts of generation skipping transfer planning and why it needs to be considered in a well designed charitable gift plan.  MORE »