Tax Law Update 2009-10-01 (1)Tax Law Update 2009-10-01 (1)
Texas District Court respects decedent's unfunded FLP for estate tax purposes. A case out of Texas sure enough shows it pays to know the law. In this case, clients saved about $40 million. In Keller v. United States, No. V-02-62 (S.D. Texas Aug. 20, 2009), the U.S. District Court for the Southern District of Texas ruled in favor of the taxpayer, holding that the estate of Maude O'Connor Williams was
David A. Handler, partner, & Alison E. Lothes, associate in the Chicago office of Kirkland & Elli
• Texas District Court respects decedent's unfunded FLP for estate tax purposes. A case out of Texas sure enough shows it pays to know the law. In this case, clients saved about $40 million.
In Keller v. United States, No. V-02-62 (S.D. Texas Aug. 20, 2009), the U.S. District Court for the Southern District of Texas ruled in favor of the taxpayer, holding that the estate of Maude O'Connor Williams was entitled to a refund based on the value of family limited partnership (FLP) interests owned by two trusts that were includible in Maude's estate. The FLP had not been formally funded before Maude's death. But the court held that, under Texas law,...
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