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.

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Definitions:

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