Gary Zwick is a partner of Walter & Haverfield LLP
and Chair of the firm's Tax & Wealth Management
Group. He has a general tax practice, with emphasis
on tax planning for closely-held and family
businesses and their owners, and high net worth
individuals. This encompasses not only income tax
planning, but also estate planning, ERISA,
Subchapters C & S, mergers and acquisitions,
employee benefits and IRS and tax court practice.
Clearly the tax benefits of FLPs and
FLLCs have been responsible for the proliferation of
FLPs. The non-tax aspects of FLPs are the
greatest reasons to tell a client to implement a
FLP. Clients continually raise issues with their
estate planners which include the need for family
unity, professional assistance for family members in
managing family wealth, protection of successors
from creditors, divorce and predatory litigation,
ease of transfer of assets including avoidance of
transfer taxes on the transfer of assets which may
be owned by a FLP, restricting the transfer of
family assets outside the family and power of
attorney alternatives including protecting family
members with special needs. The FLP can help solve
many if not all of these issues.
LEARN:
Reasons for you
to recommend Family Partnerships and LLCs to
clientsType of entity to
selectState of
organizationTax Reasons to transfer assets and
the tax pros and cons of doing so in a Family
Partnership or LLCChecklist
of organizational documents, decisions and
electionsAssignment of
interest vs. certificationWhat to look for in the operating
agreementsTransfers of units
by gift or sale and combinations with other
techniquesGift tax
returns-compliance and the Statute of
LimitationsIRS attack of gift
valuation under Sec. 2703, 2704, SHAM transaction
doctrine, swing vote, gift on formation and family
attribution theoriesIRS audit
after death - Sec. 2036What
effect will circular 230 have on our advice in this
area
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