Family Limited Partnerships
When a business has been in a family for many years it carries a large amount of sentimental value. Families often wish to keep the business within in the family and save as much as they can on taxes when it is passed down. The creation of a family limited partnership, or FLP, can help business owners save on estate and gift taxes, create liability protection for certain partners and protect the business in the event of a death or failed marriage. A Fremont estate planning lawyer should be consulted immediately if you are considering forming a family limited partnership.
Creating a family limited partnership in Fremont
A family limited partnership operates under the same umbrella as a normal limited partnership. General partners maintain control of the company and can participate in management while limited partners can receive gifts and hold limited liability. A FLP will allow you to control the assets and management of the company for as long as you desire while you slowly merge liability over to a limited partner. Family limited partnerships can also help protect your company from future creditors and have a positive influence on any succession planning you intend on completing. Our law firm has helped thousands of client’s design their specific estate plans over our career. We understand that this business means a lot to your family and that is why we promise to work very hard for you.
Many business owners who participate in family limited partnerships are in the preliminary stages of passing their business on. Whether you have poor health or simply planning to retire, a FLP can help you maintain control of your business while gifting large amounts of capital and assets to its new partners. It is very important you receive correct legal advice because you do not want your loved ones to be approached by any tax agency in the near or distant future. We will help you create a carefully drafted family limited partnership so you can maintain a peace of mind concerning the future of the assets you have acquired over your lifetime.