Family Limited Partnership (FLP) good estate planning
A great number of people have been told that Family Limited Partnerships (FLPs) are an excellent estate-planning tool. In a sense, this is true. And should the members of someone’s family feel that they have the assets sufficient enough to warrant setting up a limited partnership, then they could save up to 30 percent on the value of the assets in that family limited partnership for estate tax purposes?
There are other benefits to FLPs. Using a limited liability partnership structure such as this can be a useful means of protecting family assets from creditors. Similarly, if a person is considering remarriage and has children from a previous marriage, then using FLPs structure can help to protect the children’s future inheritance from any claim the new spouse may have.
However, there is a downside to Family Limited Partnerships. Although FLPS can be a very useful tool for families to protect their assets for the next generation, it must be remembered that FLPs are not always the best tool for estate planning. This is because some assets cannot be included in the assets of an FLP, such as S-corporation securities, qualified plans, and personal items.
Additionally, in order to be of any great benefit, assets qualifying for inclusion in an FLP have to be in excess of $1 million, otherwise, other estate-planning vehicles, such as a life insurance trust, would become a more cost-effective means of estate-planning. In addition, at an overall cost of over $100,000 to maintain, an FLP is not necessarily the cheapest means available for someone wishing to protect his family’s assets into the next generation.
In fact, it appears that the best bet for FLPs are cases where there is a fairly affluent patriarch who has invested most of his money in real estate but does not yet feel ready to turn over control of his life’s savings into a trust. Under circumstances such as these, a limited liability partnership could be just the thing for someone to protect the family’s potential assets!
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
Properly structuring a Family Limited Partnership (FLP)
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