Family Limited Partnership - FLP
Definition of 'Family Limited Partnership - FLP'A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings. |
|
Investopedia explains 'Family Limited Partnership - FLP'An FLP is different from a conventional trust, as family members actually own a share in a business. Shares can be gifted to family members over years, thus taking advantage of gift tax exemptions on an annual basis. The assets held in an FLP impact the level of estate tax savings that can be realized by using an FLP. In general, the more illiquid and complex the asset mix, the more difficult the FLP is to evaluate, and the larger the potential for estate tax savings. |
Related Definitions
Articles Of Interest
-
Protect Your Personal Assets
A family limited partnership (FLP) can go a long way toward securing your family's property. -
Safe Tax Planning For High-Net-Worth Filers
Planning is essential for the affluent seeking tax breaks. Get to know the legal strategies for saving more. -
Getting Started On Your Estate Plan
With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips. -
Get Ready For The Estate Tax Phase-Out
Changes to federal legislation will affect how your assets are treated once you're gone - be prepared. -
How do I list the beneficiaries of my life insurance policies if I have a trust?
Because most states protect life insurance policies from creditors, most buyer questions come from the confusion created with ownership and beneficiary designations because of tax treatment. ... -
New Tax Rules Target The Top Tax Bracket
The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years. -
The Financial Fallout Of The DOMA Repeal For Same-Sex Couples
The recent Supreme Court decision to repeal the Defense of Marriage Act has paved the way for same-sex couples to enjoy the same federal benefits as opposite-sex couples. -
3 Financial Tasks We Think Are Harder Than They Really Are
Use these three tips to help put your financial situation into perspective. It turns out, organizing your finances isn't nearly as hard as you thought. -
Certifications For Estate Planning
These certifications can lead to a promising career, but is estate planning for you? -
Canadians: Smart Ways To Use Your Tax Refund
Taxes are an annoying annual chore akin to going to the dentist. Luckily, however, some of us get a nice tax refund after the process. It's important to use this refund wisely though, and Canadians ...
Free Annual Reports