Because carried interest does not fit neatly into the Internal Revenue Code (Code) provisions that govern estate planning, it can be daunting for private fund founders that want to transfer their stakes to trusts or other vehicles for their descendants. As the founders of private funds have aged, however, they have spurred the development of different strategies to accomplish that goal. A recent webinar sponsored by Strafford CLE Webinars, featuring Stroock partner Kevin Matz, Withersworldwide partner Marissa Dungey and Loeb & Loeb partner Cristine M. Sapers, detailed some of the approaches founders can adopt to bequeath their interests to others. This second article in a three-part series sets forth some estate-planning structures private fund founders can use to transfer carried interest while complying with the Code, as well as certain relevant safe harbors and exceptions to the requirements. The first article described the pertinent Code provisions that are triggered when transferring carried interest as part of estate planning. The third article will detail some clauses that can be used to overcome valuation issues when gifting carried interest. See “Sidley Partners Discuss Trends in Private Fund Seed Deals, Governance, Succession, Estate Planning and Tax Structuring (Part Two of Two)” (Oct. 2, 2014); and “Estate Planning Tips for Fund Managers” (Jun. 2, 2014).