Limited partnerships and limited liability companies (LLCs) have been used for a long time by wealthy families to distribute assets to relatives. The IRS has been concerned that many of these families are using these investment tools as a way to avoid paying taxes. Recently the IRS has announced a new set of rules that deal with these investment entities and how the assets contained in them are to be valued and taxed. “These rules may have a substantial and direct impact on the transfer of assets in these vehicles, so those who use them need to know what’s coming so that they can be prepared.” This article discusses how these instruments have been used by families to avoid paying taxes and how the IRS would like to change that. Those that will be impacted by these new rules should speak with an experienced estate planner.
See Mark P. Cussen, New IRS Rules: How They Will Impact Partnerships and LLCs, Investopedia, December 17, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
