The IRS hates FLP discounts but has had little success challenging them (FORBES, Oct. 19, 1998).

FORBES: The new giving game

The FLP must maintain the focus on families as new members join the project.

UNESCO: The Family Literacy Project

If passed by Congress, pending legislation will eliminate the ability to discount the value of FLP gifts.

FORBES

So they sold some bonds that were slated to go into the FLP and paid 147 million in estate tax.

FORBES: Fifth Circuit Upholds Keller Decision - Shows Power Of The Family Limited Partnership

Up to a point, this lowball valuation will pass muster at the IRS. In a typical FLP Dad and Mom remain in control.

FORBES: Family Inc.

Closer to home, consider owning assets within a family limited partnership (FLP) and taking advantage of leveraged gifting in order to reduce your taxable estate.

FORBES

If you study the cases where taxpayers lose FLP cases, you will, almost always, if not inevitably, find that the failure was not one of a flawed plan.

FORBES: Family Limited Partnerships Require Good Planning and Execution

If a government-funded initiative requires short-term workers, FLP group members are often the first to apply and as a result will be absent from the sessions for the duration of the contract.

UNESCO: The Family Literacy Project

As donors do not make long-term commitments and some do not let organizations know in advance when they are going to change their funding criteria, this poses a major challenge to the FLP.

UNESCO: The Family Literacy Project

First, he put Watson shares in a FLP.

FORBES: It's Never Too Early

Once in an FLP or LLC, the assets fall under the control of a manager, who decides the size and timing of distributions, says Scott Winget, a senior director of planning at Wells Fargo Family Wealth.

WSJ: Family Value: Last Chance to Foil a Gift Tax