Family Limited Partnerships

Over the past decade Family Limited Partnerships and other types of family controlled holding companies have become one of the most popular estate planning tools. Aside form the business purposes of such entities, such as centralized management and protection of assets from creditor claims, they also may offer some estate planning advantages through valuation discounts.

The valuation of Limited Partnership and similar interests typically requires the application of discounts from pro rata value for both Lack of Marketability and Control. These discounts are derived from actual market evidence but must also be supported by the facts and circumstances unique to every partnership. The resulting Fair Market Value can be very useful in transferring ownership from one generation to the next with the least tax impact.

The appraisers at HSSK work with tax attorneys, accountants and other estate planning professionals in their efforts to help clients achieve their family's goals. This experience provides a unique perspective and results in an effective and defendable appraisal if challenged.