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In Estate of Powell,1 issued on May 18, 2017, the U.S. Tax Court determined that cash and marketable securities transferred into a family limited partnership (FLP) under a power of attorney (POA) approximately one week before the taxpayer’s death were includible in the taxpayer’s gross estate under Internal Revenue Code Section 2036(a)(2). While the bad facts surrounding the transaction make this result unsurprising, the decision is notable because it resurrects some of the less regarded facets of the Tax Court’s decision in Estate of Strangi2 and unexpectedly offers up a new analytical framework intended to achieve the long recognized end result of preventing double taxation of an FLP interest and its underlying assets when inclusion un...
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