1. C

Individuals with a "minority interest" typically have no management power, lack voting rights and have no say in the sale or liquidation of the business.

2.
A

In a typical FLP setup, the owners (parents) retain the general partnership interests and the children/grandchildren receive the limited partnership interests. The limited partners may qualify for the minority and lack of marketability discounts.

3.
B

A Blockage discount is only available for publically traded corporations. Mr. Stewart would not qualify for the minority discount either since he owns a controlling interest in the business by owning 80% of the company.

4.
A

Jeff will receive a step-up in basis to $30,000 on the ABC stock, and he will not owe any taxes on the inheritance of the stock. These assets will add $430,000 to the gross estate of Mr. Jones and Jeff will not owe any federal income tax on the life insurance proceeds.

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