Family partnerships are a tax strategy that may be at risk of being cut by Congress. This type of partnership agreement exists between family members and divides specific rights to monetary assets among the members. The estate or gift tax return from these partnerships informs the IRS that each piece is worth less, "because no outside investor would pay full value for a minority stake in a private partnership," Forbes says.
"It's a tricky business," says White & Case partner John Olivieri. "Since disagreements among relatives can make minority stakes genuinely worth far less than their pro rata share of the whole."