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Effective Estate Planning with LLCs and LLLPs after Powell

EFFECTIVE ESTATE PLANNING WITH LLCs AND LLLPs AFTER POWELL

Cost Free
Presentation Length 1.0 hour

Recorded DateNovember 17, 2020
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaSpecialized Knowledge
Course LevelBasic
Series: Estate Planning
Course Description

The Tax Court case of Powell v. Commissioner held that the decedent’s estate owned the assets that the decedent had contributed to a limited partnership because the decedent indirectly retained the power to determine if and when there would be a distribution from the partnership or liquidation of the partnership. This opinion extended the application of Section 2036 to partnerships, stated in the Fifth Circuit Court of Appeals case of Strangi v. Commissioner. In Powell, the decedent did not own a general partner interest. However, the Court held that the decedent was considered to be in control over the general partner, because the general partner was the Agent under the decedent’s Durable Power of Attorney, and as Agent owed a fiduciary duty to the decedent in deciding when to make a distribution from the partnership or cause a liquidation of the partnership.

There appears to be confusion over when the Powell case will apply, what practitioners and clients can safely use planning strategies, and what can be done to avoid applying the Powell result for existing family LLC, limited partnership, and other arrangements.

Learning Objectives:


  • Identify the holdings of the Powell and Strangi

  • Identify these holdings for the creation of new estate plans for clients

  • Identify strategies to help minimize the risk these cases pose to existing family LLCs, limited partnerships, and other entities

  • Identify form language that can be used in partnership and operating agreements to help avoid the application of the Powell and Strangi holdings

PLEASE NOTE: ARCHIVED WEBINARS DO NOT QUALIFY FOR CPE
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Gassman crotty den

Kenneth J. Crotty, J.D., LL.M. is a partner at the Clearwater, Florida law firm of Gassman, Crotty & Denicolo, P.A., where he practices in the areas of estate, tax, and trust planning, taxation, physician representation, and corporate and business law.
     
He is Board Certified in Tax Law.  Mr. Crotty has co-authored several handbooks that have been published in BNA Tax & Accounting, Estate Planning magazine, and Steve Leimberg’s Estate Planning and Asset Protection Planning Newsletters. He, Alan Gassman, and Christopher Denicolo are the co-authors of the BNA book Estate Tax Planning in 2011 & 2012.

About Our Presenter

Gassman crotty den

Our firm was formed in 1987 with one lawyer and a shared secretary and receptionist to provide representation to professionals, business owners and retirees in their estate and related tax and personal planning, business and corporate needs.

Since then we have grown to 6 lawyers and over 20 staff, which we have found over the past two decades to be the best size for us. We are very proud of our team, our systems, and our dedication to providing the best and most appropriate legal services for all clients, whether big or small. Our lawyers meet together almost every morning to discuss and work together on cases, strategies and practice improvement projects in order to work the most efficiently and effectively for our clients. We like what we do and enjoy working together.