5th Circuit Affirms Tax Court’s Application of § 2036 to FLP Assets

Business Valuation UpdateVol. 11 No. 9
Legal and Court Case Update
September 2005
estate and gift taxation
family limited partnership (FLP), estate tax, bona fide sale, adequate consideration, section 2036

Estate of Strangi v. Commissioner (IV)
2005 U.S. App. LEXIS 14497
July 15, 2005
US
Federal Court
5th Circuit
United States Court of Appeals
Jolly

Summary

In this last installment of the Strangi case, the 5th Circuit affirmed the Tax Court’s decision on remand that Strangi had retained enjoyment of the assets he had transferred to Strangi Family Limited Partnership (SFLP) and Stranco, Inc. through an implied agreement, and, thus, that the transferred assets were properly included in his estate under IRC Section 2036(a) for estate tax purposes.

See Also

Estate of Strangi v. Commissioner (IV)

In this last installment of the Strangi case, the Fifth Circuit affirmed the Tax Court's decision on remand that Strangi had retained enjoyment of the assets he had transferred to Strangi Family Limited Partnership (SFLP) and Stranco, Inc.