STINVESTOR
Your Statement: ”First of all, assets in a Family Limited Partnership are valued on a COST basis in calculating the Gift Tax due”
Gift Tax for assets made in kind is calculated on the mean between the High and Low of the price on the date the gift is completed. Hence, make the gift now before the property appreciates. The Cost Basis for determining future gain and loss becomes the Cost Basis of the Grantor plus any Gift Tax paid.
The remainder of your post is essentially correct. Consider other assets (home, vacation home, life insurance, etc), It does not take a great deal to exceed the exclusion amount in any given year. The plan is used to protect the transfer of assets the exceed these amounts. AND, the time to put that protection in place is before substantial appreciation happens.
Please note (on my original post regarding this subject), that I have no idea if this is why these sales may have taken place, only that, now (when the per share price is comparative low] is the time to make such Estate and Gift Tax plans.
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