Family Limited Partnerships in Plano, TX
FLPs are an Estate Planning Tool Attorney John F. Williams, Jr. Uses in Planning
The Fammily Limited Partnership (FLP) is an estate planning tool that has received considerable attention over the last few years. The FLP is simply a limited partnership in which all or most of the partners are family members. My Plano TX Estate Planning Law Firm uses FLPs as a strategy for asset protection and estate planning.
Purpose of a Family Limited Partnership
The FLP has specific distinctive properties which can be beneficial for both asset protection and estate planning. Its use does not require the exclusion of other entities such as C-Corporations, LLCs, and certain Trusts. In fact, an FLP is often combined strategically with one or more of the aforementioned entities. The appropriate role of the FLP is to act as a holding company, owning specific assets and interests in other entities. In this way it acts as the foundation for sound estate planning when an FLP is required. The distinguishing features of the FLP are pass-through taxation and a split in management rights involving general and limited partnership interests. The combination of these two features makes the FLP a flexible and effective tool for many types of planning.
Some Benefits of an FLP:
- Controlled distributions
- Control over limited partners
- Valuation discounts
- Creditor protection
- Arbitration for dispute resolution
- Buy-sell and right of first refusal
- Asset protection
- Flexible use of family assets
- Gifting Reduced costs
My Law Offices have routinely utilized Family Limited Partnerships in our Estate Planning practice on behalf of our clients. When we meet, I will be happy to discuss if the FLP is appropriate, beneficial and cost effective for your situation.
If you have other questions regarding FLPs, Estate Planning, or LLCs, please contact the Law Offices of John F. Williams, Jr. today. Call today for your Free Consultation and I look forward to serving your needs.