What are possible complexities that should be addressed by tax advisor?
Some of the complexities that must be addressed when establishing a Family Limited Partnership include making sure that the Partnership Agreement is carefully drafted so the Partnership is qualified as such under Federal tax law, and that income and expenses of the Partnership are properly allocated between the General and Limited Partners. The General Partner must also be “adequately capitalized” according to state creditor law regulating partnerships can be significantly more complicated than other areas of Federal tax. It is definitely advantageous to use proper planning to avoid potential tax complications.
Related Questions
- My attorney or tax advisor has never heard of a Private Annuity Trust or has heard of it and doesn think it is legal. How can they be assured that it is a legitimate Estate Planning strategy?
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- What are possible complexities that should be addressed by tax advisor?
