Family Limited Partnership Can Help Reduce Estate Taxes
Can the way a property owner holds title to real estate impact the fair market value of the real estate for estate tax purposes? Absolutely! The value of a decedent’s estate can be significantly reduced depending upon how a person’s assets are owned at death. For example, if real estate is owned in a family limited partnership (“FLP”), the value of the real estate may be discounted, for estate tax purposes, due to “lack of marketability” and “minority interest” discounts, thus reducing the amount of estate taxes due upon the property owner’s death. Read more