To Prove Successful in Freezing the Value of an Interest

question 74

Multiple Choice

To prove successful in freezing the value of an interest in a family limited partnership (FLP) , which, if any, of the following techniques is desirable?

• A)The FLP should be created just prior to death to avoid the appearance of being tax motivated.
• B)The FLP should be largely funded with personal assets (e.g., personal residence).
• C)When valuing the FLP interest, apply a large discount, to provide a safety zone for later bargaining with the IRS.
• D)Appraisals of the assets transferred to the FLP should be avoided, as they tend to limit the size of any discount claimed.
• E)None of the above.

---

Definitions:

Poor Etiquette

Refers to behavior that is considered rude, inappropriate, or lacking in good manners within a social or professional setting.

Professional Behaviour

Involves conducting oneself in a manner that is ethical, respectful, and competent in a professional setting.

Unsolicited Application

A job application sent by a candidate that was not in response to a specific job opening advertised by the employer.

Solicited Application

A job application submitted in response to an advertised job opening, directly invited or requested by the employer.