Family Limited Partnership (FLP's)

Family Limited Partnership is used to move wealth from one generation to another.
Grandmother with Granddaughter

The donors may then gift or sell the limited partnership interests to heirs or trusts at fair market value which is less than the value of the underlying assets since the limited partnership interests are not readily marketable, have few, if any, management rights, and cannot compel distributions of income or sales of assets.

Family Limited Partnerships are recognized by attorneys, accountants and other professionals as an outstanding tool for estate planning, asset preservation and charitable giving.

The FLP device takes advantage of a well-known partnership attribute: assets held by a partnership are worth less (often 30%-40% less) than otherwise due to the partnership interest's lack of control and marketability.

The FLP has become one of the most popular tools used to transfer assets from one generation to another.