The differences between Family Limited Partnerships and General Partnerships

Although family limited partnerships (FLPs) have been used for the management of family property and businesses for a number of years, they have recently drawn widespread attention as a means of obtaining valuation “discounts” for federal gift and estate tax purposes. In a general partnership, all partners have a voice in the management of the partnership and all partners are held personally liable for their pro-rata share of the partnership’s debts and obligations.

In an FLP, however, there are two classes of partners: the general partner(s) and limited partners. The general partners run the partnership and make all the decisions regarding the partnership, except to the extent restricted in the partnership agreement. On the other hand, limited partners are more like silent investors having little or no control over day-to-day operations of the partnership. As a result, general partners are personally liable for the partnership’s debts and obligations while limited partners are not.

Family Limited Partnerships

• 
  The origin of Family Limited Partnerships (FLPs)
  
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  How Family Limited Partnerships (FLPs) work
  
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  Family Limited Partnership Review
  
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  Issues about asset protection
  
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  Family limited partnerships – Charging order protection
  
• Future creditors and fraudulent transfers
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  Charging Order Protection
  
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  Uniform Limited Partnership Act – Section19
  
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  Family Limited Partnerships and the benefits of leverage
  
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  Family Limited Partnership (FLP) frequently asked questions
  
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  Family Limited Partnerships (FLPs) and creditor protection
  
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  Family Limited Partnerships (FLPs): keeping the family business in the family
  
• The differences between Family Limited Partnerships and General Partnerships
• Family Limited Partnerships and Family Limited Liability Companies work well
• Family Limited Partnerships and IRS scrutiny
• Building wealth with a Family Limited Partnership
• Carefully planned Family Limited Partnerships can avoid IRS scrutiny
• Court decision could affect Family Limited Partnerships
• Family Limited Partnership structures
• Defects in Family Limited Partnerships – Part One
• Defects in Family Limited Partnerships – Part Two
• Defects in Family Limited Partnerships – Part Three
• Properly structuring a Family Limited Partnership (FLP) – Part One
• Properly structuring a Family Limited Partnership – Part Two
• Properly structuring a Family Limited Partnership – Part Three
• Using Family Limited Partnerships for planning estates
• Family Limited Partnerships (FLPs) and Family Limited Liability Companies (FLLCs)
• What are Family Limited Partnerships (FLPs)?
• Is a Family Limited Partnership (FLP) good estate planning?
• Maintenance List for Family Limited Partnerships – Part One
• Maintenance List for Family Limited Partnerships – Part Two
• Maintenance List for Family Limited Partnerships -Part Three
• Is a Family Limited Partnership (FLP) a good Estate Planning tool?
• The attraction of Family Limited Partnerships (FLPs)
• When Family Limited Partnerships are suitable
• Family Limited Partnership Review
• The uses and benefits of Family Limited Partnerships (FLPs)
• Family Limited Partnerships – an overview
• Family Limited Partnerships (FLPs) attract IRS investigations
• Family Limited Partnership “Do’s and Don’ts”
• Family Limited Partnerships facing increased scrutiny by the IRS

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