Estate of Powell: A New Example of Failed Deathbed Tax Planning

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by Joseph Percopo, JD, LLM | Mateer & Harbert

The recent Tax Court decision of Estate of Powell represents the latest successful attack on valuation discount planning. By extending application of Code § 2036(a)(2) to decedents that own only limited partnership interests, Powell may be the most important tax case affecting family limited partnerships and family limited liability companies in more than a decade. If broadly applied, the findings in this case could eliminate many discounts used in valuation planning.

Powell is yet another case where "bad facts make bad law." But, there are 5 steps you can take to help clients avoid the same result. Read this insightful Thought Paper by Joseph Percopo, JD, LLM, to find out more.