Family Limited Partnership

Make Decisions Together with the People You Love Most

Family Limited Partnerships (FLP) allow you to own assets with your family, make decisions jointly with your family, share income with your children without gifting, provide practical financial education opportunities, and make tax favored wealth transfers to the next generation. It is highly effective tool to accomplish estate planning goals, family sales, and charitable gifts.

Establishing a FLP, requires you to determine who will be the general partners (GP), limited partners (LP), who has voting rights, liquidation rights, and what will be the income sharing arrangements. Additionally, you’re expected to draft and execute the FLP, establish accounts in the name of the FLP, fund it with the appropriate assets, distribute GP and LP units in proportional shares, and conduct appraisals for the contributed property and any unit values.

As part of our Loose-Ends series we consider several planning areas that should be regularly re-assessed and aligned with updated goals, documents, and other details. Here are some areas of your Family Limited Partnership to review and tie off:

Potential loose-ends to secure and manage

• Maintaining the capital accounts
• Issuing proportional distributions to all owners
• Monitoring investments and asset allocations
• Preparing year-end tax forms and ensuring the CPA, Estate Attorney and Advisor are communicating

If you are interested learning more about our Loose Ends – Wealth & Beyond programs check out our recent blogs, download the outline by clicking here, or reach out to your advisor today!

• LEM – Looking at Wealth & Beyond – Getting the Most out of the Financial Future You Have Built
• LEM – The Bigger Why – Which provides an overview of Loose Ends Management
• LEM – Reviewing Your Memorial Instructions – Ensuring your wishes are documented and communicated to those who will carry them out
• Reviewing Your Last Will & Testament – Defining personal intentions and determining asset distribution
• Reviewing Your Trust Documents – Estate planning revised
• Reviewing Your DAF & Other Philanthropic Vehicles – Leaving a legacy and giving to the causes that mean the most to you and your family
• The LEM Asset Microscopes – Getting focused on documenting assets
• Family Limited Partnerships – Making decisions with those you love the most