Family Limited Partnerships (FLPs) and the benefits of leverage

By giving the partnership interests in increments over a period of time, you would be able to take maximum advantage of the $10,000 annual gift tax exclusion. The exclusion increases to $20,000 if you’re married and if each spouse elects to give the maximum amount. The gift tax exclusion is also indexed for inflation.

Additionally, “minority discounts,” (allowable reductions to the value of the gift because it is a minority interest) could lead to greater leverage of the annual exclusion and the unified credit. For example, you may be able to discount the value of the gift up to 30% or more. However, in order for the discount to be valid, there has to be a legitimate business reason for the partnership.

Generally, your desire to keep the business in the family is a legitimate reason to set up a partnership agreement, just as long as you are joined together for the purpose of enterprise and not just to avoid taxes.

flp

Family Limited Partnerships


  • The origin of Family Limited Partnerships (FLPs)

  • How Family Limited Partnerships (FLPs) work

  • Family Limited Partnership Review

  • Issues about asset protection

  • Family limited partnerships – Charging order protection
  • Future creditors and fraudulent transfers

  • Charging Order Protection

  • Uniform Limited Partnership Act – Section19
  • Family Limited Partnerships and the benefits of leverage
  • Family Limited Partnership (FLP) frequently asked questions
  • Family Limited Partnerships (FLPs) and creditor protection
  • 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)
  • More frequently asked questions about Family Limited Partnerships (FLPs) – Part One
  • More frequently asked questions about Family Limited Partnerships (FLPs) – Part Two
  • More frequently asekd questions about Family Limited Partnerships (FLPs) – Part Three
  • More frequently asked questions about Family Limited Partnerships (FLPs) – Part Four
  • More frequently asked questions about Family Limited Partnerships (FLPs) – Part Five
  • 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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