The gifted limited-partnership interests are typically valued at a discount for lack of marketability and lack of control, so more wealth can pass for less gift-tax exemption used. IRS scrutiny is heavy — structure and operation matter.
Glossary · entities
Family Limited Partnership
Acronym: FLP
In plain English
A partnership among family members that holds investment assets; seniors keep control as general partners and gift limited-partnership interests to juniors at valuation discounts.