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.
|
-
With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips.
Read More »
-
Changes to federal legislation will affect how your assets are treated once you're gone - be prepared.
Read More »
-
Planning is essential for the affluent seeking tax breaks. Get to know the legal strategies for saving more.
Read More »
-
|
|
