As in Hackl, the IRS contended that the transfers were a future interest due to the restrictions on the transfer of partnership interests.
Price reinforces the criteria the Tax Court set out in Hackl for determining whether an outright gift of a partnership or LLC interest is a future interest or a present interest.
14) Transmissible future interests can cause unnecessary estate taxes, can increase administrative and tracing costs, and can allow the property to be diverted outside the family or bloodline.
Even at common law, it is important to note, transmissible future interests only arise with respect to remainder interests to named individuals or to single-generation classes.
Another classic and recurrent drafting deficiency leading to a transmissible future interest at common law is writing a condition of survival into the first future interest but neglecting to write it into one or more alternative future interests in favor of identified individuals or single-generation classes.
It must be admitted that section 2-707, in presuming all future interests to be contingent upon surviving to distribution, will doubtless reduce litigation over whether, under a trust instrument, a remainderman is subject to a requirement of survival.
25) Future interests, in contrast to present interests or possessory interests, do not offer immediate beneficial enjoyment of the income or the property.
The Service's position more appropriately supports the argument that the receipt of a restricted partnership interest should be discounted to reflect the value at which it could presently be sold, not that only a future interest
has been received.
Ordinarily, most transfers to trusts are gifts of future interests and therefore do not qualify for the $10,000 annual exclusion.
Furthermore, this gift back to the trust is one of a future interest and consequently does not qualify for the $10,000 annual exclusion.
7 million of their future interests
under these cash compensation arrangements, this group of DLJ employees will also acquire options to purchase 9,168,724 million shares of common stock at an exercise price of $27 per share.
Acacia Research intends initially to retain significant control of its present and future interests
and occasionally to sell portions to generate earnings.