Family Limited Partnerships

Family Limited Partnerships (FLP) can provide an excellent mechanism to make controlled distributions to family members, provide protection from creditor claims, force arbitration in the case of disputes post-mortem and secure valuation discounts that allow you to transfer assets for less than their underlying value for purpose of gift and estate tax.

Maintain control of your assets us Family Limited Partnerships

When you establish your Family Limited Partnership you will designate yourself as a general partner and your heirs as limited partners. As limited partners they will be entitled to a share of partnership assets upon dissolution, but will have no say in the current operations. This keeps you in control of your assets while you are alive.

Leverage your unified tax credit with a Family Limited Partnership

The tax code allows you to discount the value of a limited partnership interest by structuring the partnership agreement to limit the sale of the partners interest (i.e. a lack of marketability discount) and by restricting the limited partners control over the assets (i.e. lack of control discount), so the partnership interest gifted to your heirs will typically be valued for less than the value of the assets you put into the partnership. This uses less of your lifetime exemption, freezes the value of the assets removed from your estate, and reduces your gift and estate tax.

Podraza CPA can help:

  • Determine if a family limited partnership is right for you
  • Determine which assets are most appropriate to place in the family limited partnership
  • Coordinate professionals to value assets and develop legal documents
  • Prepare tax returns
  • Provide representation for inquiries, audits and assessments

Call us today to find out if a family limited partnership is right for you.

Family Limited Partnerships (FLP) can provide an excellent mechanism to make controlled distributions to family members, provide protection from creditor claims, force arbitration in the case of disputes post-mortem and secure valuation discounts that allow you to transfer assets for less than their underlying value for purpose of gift and estate tax.