If you are looking for a way to create a limited partnership in order to transfer asset ownership to members of your family without a mountain of tax consequences, a Family Limited Partnership may be of interest to you.
This type of partnership is designed to allow you to maintain full control of your estate while lowering the value of assets and investments for the purpose of estate taxes. By reducing the amount of estate taxes owed, the risk of having to sell off assets to pay those taxes is lessened. An FLP works well to transfer real estate, investment portfolios, and family businesses to the next generation.
Usually, senior members of the family will own the partnership and may establish a gifting program of partnership interest to the younger generation. This can acclimate the younger family members to the family business and investments while also limiting their liability.
Contact a professional estate litigation Attorney to find out if a Family Limited Partnership is an option as part of your family's estate plan.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.