Acceptable Nontax Purposes for Family Limited Partnership Investments

Prof. Wendy Gerzog (University of Baltimore School of Law) has published her article entitled Miller: Effective FLP Line Drawing, Tax Notes, Vol. 124, No. 12 (2009).  The abstract is below:

Miller is a decision on family limited partnerships (FLPs) with effective line drawing. The case is particularly helpful to distinguish the types of investment activities that constitute an acceptable nontax purpose under the Bongard criteria. The opinion further provides some guidelines on the factors of age, health, and FLP payment of estate tax liabilities to determine the applicability of section 2036 and its bona fide sales exception.