Creates family limited partnership

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Susan creates a family limited partnership in which she owns the general and limited partnership interests. For estate planning purposes, she begins to make gifts of the limited partnership interests to her 4 children and 3 grandchildren in 2015. The value of each of the annual gifts of the limited partnership interests is $25,000 per recipient (after all discounts have been applied). From a gift tax perspective, which of the following statements is true:

a. The entire gift of the limited partnership interest will always qualify for the annual exclusion.

b. The gift of the limited partnership interest may reduce the lifetime gift tax unified credit applicable exclusion amount available to Susan.

c. All gifts of the limited partnership interests made within 3 years of Susan’s death will be included in Susan’s gross estate.

d. Susan can avoid gift tax if the partnership interests are placed in a trust for her minor-aged descendents.

Reference no: EM131920779

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