To Flip Or Not to Flip?: Using a Family Limited Partnership As a Harvesting Strategy (Report‪)‬

ABSTRACT The purpose of this paper is to focus on the Family Limited Partnership as a potential harvesting strategy. The use of a family limited partnership (FLiP) in succession planning has proliferated in recent years. The popularity of FLiPs can be attributed to the unique benefits they offer to manage and transfer family assets, while minimizing gift and estate tax liabilities through careful planning of intrafamily transfers. However, a recent court decision may be of concern to those who use a FLiP to reduce taxes and fail to establish sufficient non-tax business reasons for transferring assets to a FLiP.