Houston Estate Planning and Elder Law Attorney Blog
New regulations are coming from the IRS regarding family partnerships and limited liability companies. Perhaps in search of revenue, or trying to overcome a legally-permitted loophole, the IRS will soon make changes to capture some otherwise lost revenue on these entities, which have enjoyed tax discounts on assets that are otherwise easy to value.
Family partnerships and LLCs have been used for many years as a means of allowing family members to own assets jointly and to allow assets to be distributed in a relatively easy manner when one of the family members passes away.
The practice began as a way to handle control of family-owned businesses. However, when a family-owned business is owned by a family legal entity, the only way anyone else could buy into the business is by becoming a member of the partnership or LLC.