You may have heard about a Family Limited Partnership but you’re wondering exactly what it is and how it can benefit you and your family members. An FLP is a type of business partnership that is created by family members pooling their assets, such as stocks, securities, and real estate. Each family member then owns shares of the business.
Attorney Randy Doane of Doane & Doane speaks about an FLP. He says:
“The family limited partnership sets rules on how to manage the family members’ business and collective assets. It divides the rights to the income, appreciation, and control under a general partner, who manages the partnership and the limited partners are usually the beneficiaries of the property.”
With a Family Limited Partnership you can:
-Maintain control of family assets
-Facilitate annual giving
-Obtain valuation discounts for gift and estate tax purposes
-Shift income to lower tax bracket
-Create hurdles for creditors
-Provide management structure for disability, and
-Protect family assets against failed marriages
If you are interested in creating a Family Limited Partnership for your family, give the lawyers at Doane & Doane a call. They assist individuals, families, and businesses with unique estate planning needs, such as business succession, tax planning, high net worth, and charitable giving.