Law Commons^™

On Discounted Partnership Interests And Adequate Consideration, Brant J. Hellwig

Scholarly Articles

Early cases involving the government's invocation of section 2036(a) to combat the use of family limited partnerships to intentionally suppress the value of a decedent's gross estate focused on whether the decedent retained the beneficial enjoyment of the partnership property under section 2036(a)(1) or, perhaps, the right to control such beneficial enjoyment under section 2036(a)(2). In recent years, however, the focus of the section 2036(a) inquiry in the family limited partnership context has shifted almost exclusively to the issue of whether the decedent's contribution of property to the entity satisfies the statute's parenthetical exception for a "bona fide sale for …