Family Limited Partnerships and the Thompson Case

Lauren E. Bishow has recently published her Note entitled Death and Taxes: The Family Limited Partnership and Its Use in Estate Planning After the Third Circuit’s Ruling in Estate of Thompson v. Commissioner, 50 Vill. L. Rev. 1183-1211 (2005).

Here is the conclusion of Ms. Bishow’s article:

It is undeniable that the ruling in Thompson will change the use of FLPs for estate planning in the Third Circuit. The standard is stringent and will likely result in a decrease in the number of taxpayers choosing to establish an FLP as a means of estate planning. Nevertheless, for clients with dual business and estate planning goals, the use of an FLP remains a viable means of reducing the burden of the estate tax.