FLP in the Black

Abstract:     
In Estate of Black, because the Tax Court held the Blacks' transfers fell within the bona fide sales exception of section 2036, they were successful at avoiding the application of the provision. Thus, they were able to obtain valuation discounts for their transfers of property (mostly marketable securities) to their son and grandchildren. The court also decided the marital trust funding valuation date issue in the executor's favor and allowed almost half of the claimed administrative expense deductions.

Number of Pages in PDF File: 5

Keywords: estate tax, family limited partnership, FLP, section 2036, bona fide sales, marital deduction, administrative expense, section 2056, section 2053, valuation discounts, estate of Black

JEL Classification: H20, H24, H29, K34

Accepted Paper Series