Definition of a Family Limited Partnership
What is a FLP?
A Family Limited Partnership is where most or all of the members are from the same family unit. It is a very popular tool that people like to use as part of their estate plan, minimize taxes and to protect assets. A Family Limited Partnership or FLP can pull all of the families assets into one family owned business partnership that members own shares of and then the shares can be passed down for generations. The more complex the assets are set up the larger the estate tax savings you receive.
What kind of assets can I put into a FLP?
- Anything that members own individually such as:
- real estate / land
- vacation homes
- marketable securities
- bonds
- and investment partnerships
Have you thought about protecting your assets and saving money in taxes but didn’t know your options? Over the next few weeks we will be discussing ways you can set up an FLP and benefits that come with it.