When carrying out an estate freeze with family limited partnerships, the donors make gifts of the limited partnership interests but retain the general partnership interests.

Question

Quizplus · Accepted Answer

This is true. In an estate freeze with family limited partnerships, the donors gift the limited partnership interests to their heirs or beneficiaries, but retain the general partnership interests. This allows them to maintain control over the partnership and its assets while also reducing their estate tax liability.

When Carrying Out an Estate Freeze with Family Limited Partnerships