Family Limited Partnership FLP

A family limited partnership or FLP is a very useful tool for asset protection and transferring of assets. A family limited partnership or FLP has many advantages and benefits. Some of the main benefits of a family limited partnership or FLP are discussed below.

What are the benefits of a family limited partnership FLP?

Some are the advantages of having a family limited partnership or FLP are as follows. A family limited partnership or FLP can reduce gift taxes. A family limited partnership or FLP can also facilitate gifts of fractional interests.

Having a family limited partnership or FLP allows the gift giver to retain control over the gifted assets. Lastly and most importantly, a family limited partnership or FLP provides asset protection against creditors.

Although a family limited partnership or FLP has been around for a long time, it has only recently grow in popularity. A family limited partnership or FLP is not for everyone and many attorneys will advise against having a family limited partnership or FLP. If you are considering setting up a family limited partnership or FLP, make sure that you know how a family limited partnership or FLP works and what good will a family limited partnership or FLP do for you. In some cases, a family limited partnership or FLP can provide a false sense of security. There are also many ways to draft a family limited partnership or FLP. In order to provide maximum asset protection against creditors, your family limited partnership or FLP needs to be drafted a certain way. A family limited partnership or FLP can be difficult to set up if you don't know how to.