Family Limited Partnerships:
FLP terms are very flexible, and can be changed or terminated by the general partners, as opposed to irrevocable trusts which require heavy litigation to amend.
In a family business, the company’s financial challenges can also become the family’s financial challenges.When a business owner dies, the family inherits all his/her assets, including the highly valued (hence heavily taxed) company. All too frequently we hear of a family that has sold off the company to pay crippling estate taxes.
Fortunately, financial estate planners have come up with an effective strategy to counter this problem: the Family Limited Partnership (“FLP”).Although this structure has some technical complexities, the concept is very simple.This article illustrates some of the benefits of this strategy so that you can make informed decisions about the future of your business and your family’s financial well-being. More…