a gifting technique where you are the controlling general partner and are allowed to gift limited partnership interests to your chosen beneficiaries. This removes the asset from your estate at a discounted value and also removes any appreciation on the asset.
a limited partnership used in the family setting to achieve goals related to the transfer of family wealth in a tax-minimizing way to younger generations, business succession planning, and/or personal income tax planning
A legal entity that provides ultimate control and management of assets while at the same time providing asset protection.
A legal partnership between members of a family for the management and control of property, its purpose is to minimize transfer taxes.
A limited partnership created by a family to help protect the familyâ€(tm)s personal assets. Normally, the parents act as the general partners and place all of the family assets, like the home and the cars, into the FLP. The children are designated as the limited partners and contribute no assets to the FLP. Typically, each parent owns Â1/2 % of the FLP, and the children own the remaining 99%, usually in a trust. If the parents are sued, then only 1% of the familyâ€(tm)s assets are at risk.
A legal entity created by state statute that serves estate planning and asset protection needs.
A limited partnership created for family estate planning and some asset protection. It is family controlled by the general partners. A highly appreciated asset is transferred into the FLP to achieve a capital gains tax reduction. Usually, the parents are the general partners holding a 1 to 2 percent interest. The other family members are the limited partners holding the balance of the interest in the partnership.
A partnership of family members with a general partner and one or more limited partners. Formed to transfer wealth and/or income to a younger generation through the limited partnership interests, but to retain control of the assets in the older generation through the general partnership interest.
A limited partnership whose interests are owned by member of the same family so that gift and estate taxes may be reduced, although the freedom or transferability of ownership is not available.
A partnership of family members to arrange for generational transfers, maintain control in the general partners, and reduce potential liability to the transferor and transferee. Family limited partnerships utilize the benefits in wealth preservation, taxation, credit protection, and estate planning.
limited partnership that is owned entirely by members of the same family.
