This seminar is intensive and extensive. The speakers will go into every aspect of setting up and operating family limited partnerships and family limited liability companies. It is important to note, that despite some recent set backs in the tax court, these entities remain very viable estate planning tools. This expert panel will explain how to deal with tax problems arising when setting up and dissolving FLPs and FLLCs, valuation issues and valuation discounts, and also recent developments, including how to interpret the Strangi II and Stone cases.
8:30 a.m. - 9:30 a.m.
I. Overview And Purposes Of
Family Limited Partnerships
(FLPs) And Family Limited
Liability Companies (FLLCs)
B. Client Motivations
C. Administrative Benefits
D. Estate And Gift Tax Benefits
E. Family Relation
F. Using FLPs Or FLLCs In Conjunction With Traditional Trust Planning
G. Creditor Protection
H. Business Flexibility
I. Chapter 14 Considerations
2. Code §2701
3. Code §2703
4. Code §2704
9:30 a.m. - 10:20 a.m.
A. Transfer Tax Savings And Valuation Discounts Generally
1. Nature Of The Subject Interest (Minority Or Control)
2. Valuation Approaches
3. Valuation Methodologies
4. Prerogatives Of Control
5. Valuation Discounts
6. Estate Tax Considerations
7. Gift Tax Considerations
10:20 a.m. - 10:30 a.m.
10:30 a.m. - 12:00 p.m.
II. Valuation (Continued)
B. Appraisals Of Gifts Of Family Limited Partnership And Family LLC Interests
1. Proper Appraisals And Documentation
2. Fair Market Value And Revenue Ruling 59-6
3. Key Provisions In The Partnership Or LLC Agreement
4. How To Value Gifted FLP Or LLC Interests
5. Discount For Lack Of Marketability
6. Discount For Lack Of Control/Minority Interest Discount
7. IRS Attacks On FLPs And FLLCs
8. Key Decisions
9. Planning Implications
10. Buy-Sell Agreements
11. Liquidation Restrictions
12. Recent Decisions
12:00 p.m. - 1:00 p.m.
Lunch (On Your Own)
1:00 p.m. - 2:30 p.m.
III. Income Tax Considerations
A. Classification Of Limited Liability Companies
B. Comparative Advantages Of Tax Entities
C. Organization, Costs And Syndication Fees
D. Capital Accounts
E. Contributions To A FLP Or FLLC
F. Basis Of FLP Or FLLC Interest
G. Members Distributive Shares
H. Deduction Of Losses
I. Allocation Of Liabilities
J. Distributions Subject To Gain Recognition
K. Investment Company Issues
2:30 p.m. - 2:40 p.m.
2:40 p.m. - 3:30 p.m.
IV. Formation And Operation Of FLPs
A. Formation Steps
B. Operational Issues And Facts To Avoid
C. Present Interest Exclusion – Hackl
3:30 p.m. - 4:30 p.m.
V. Estate Tax Exposure Under
A. Arguments For Inclusion Under §2036
B. Kimbell Decision
C. Strangi II Decision
D. Planning And Drafting To Avoid §2036