This Guide discusses the advantages and disadvantages of family partnerships, and includes guidance on forming, funding, and operating a family partnership. Also provides numerous checklists and practice aids so practitioners can advise clients on how to avoid Section 2036 estate tax inclusion by properly forming, funding, and operating an FLP.

Here are some of the important new features you will find in the latest edition:

• 2010 Tax Relief Act. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reinstated the estate and GST taxes for decedents who died and transfers made after 2009. [These taxes were previously repealed in 2010 under the provisions of the Economic Growth and Tax relief Reconciliation Act (EGTRRA) of 2001.] This edition has been updated for this change.
• Series LLCs. Proposed regulations addressing the classification of a series of a domestic LLC for federal tax purposes were issued in late 2010 and will become effective when finalized. Coverage of these regulations has been added to the Guide.
• Preferred Family Limited Partnerships. Preferred family limited partnerships can be used when clients desire to create two classes of partnership interests similar to the concept of common and preferred stock. A discussion has been added on this topic.