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Last-Gasp Estate Planning: The Formation of Family Limited Liability Entities Shortly Before Death

41 Pages Posted: 16 Apr 2009  

Walter D. Schwidetzky

University of Baltimore - School of Law

Abstract

Family limited partnerships have been popular gift and estate tax planning vehicles for many years. In recent years, family limited liability companies (LLCs) have also become common, particularly in those states that have updated their statutes to take the check-the-box regulations into account. LLCs with more than one member are usually classified as partnerships for federal income tax purposes. In a typical structure, when there is adequate planning, the donors form a limited partnership or an LLC (jointly, 'family limited liability entity' or FLLE), to which they contribute assets expected to appreciate in value. This article will focus on such use of FLLEs as found in the Strangi case and offer proposals for reform.

Keywords: family limited partnerships, estate tax planning, LLCs, limited liability companies, family limited liability entity, FLLE, Strangi

JEL Classification: K29, K34, H25, H29

Suggested Citation

Schwidetzky, Walter D., Last-Gasp Estate Planning: The Formation of Family Limited Liability Entities Shortly Before Death. Virginia Tax Review, Vol. 21, No. 1, 2001. Available at SSRN: https://ssrn.com/abstract=1383967

Walter D. Schwidetzky (Contact Author)

University of Baltimore - School of Law ( email )

1420 N. Charles Street
Baltimore, MD 21218
United States
(410) 837-4410 (Phone)
(410) 837-4492 (Fax)

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