How do I divest shares of inherited California real estate limited partnerships which have tax liabilities but little value?

Asked over 1 year ago - Redondo Beach, CA

I inherited LP shares two years ago when I signed a form accepting ownership from the trustee. I was not informed of their lack of value or their built-in tax liabilities. I requested to withdraw from these partnerships, and the general partner stated nobody has ever withdrawn from any of his partnerships, and hinted at adverse consequences of doing so. I tried giving away these shares to charities, but they were refused. The K-1's are costing me taxes every year and my CPA says it will get worse. How do I get rid of these shares and their tax liabilities?

Attorney answers (3)

  1. Michael Leo Potter

    Pro

    Contributor Level 20

    6

    Lawyers agree

    1

    Answered . I'd sit down with a TAX LAW attorney and discuss your options. Good Luck!

  2. Christine James

    Pro

    Contributor Level 20

    5

    Lawyers agree

    1

    Answered . I agree with Mr. Potter. You need to have the partnership documents reviewed by a tax or business attorney to discuss your options. It is really impossible to give you specific advise on how to do it in this situation without reviewing the partnership documents.

  3. Amanda Marie Cook

    Contributor Level 15

    5

    Lawyers agree

    1

    Answered . I agree with the previous attorneys; a review of the partnership documents and the actual tax issues is necessary to providing advice in this forum.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more

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