Family lLimited Partnership. 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.

Family Limited 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.

Family Limited Partnership. 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.