FAMILY LIMITED PARTNERSHIP

FLPs are bona fide business entities designed to hold a family's assets together while protecting those assets from future creditors. It can ensure proper management of a large estate spread among many family members. It works like this -- Partners in a limited partnership are either "general partners" or "limited partners". General partners control the partnership. Limited partners have virtually no voice in the management of the partnership. Limited partners often have no guaranteed rights to distributions from the partnership,

but may incur annual income tax liability as a result of the partnership's business activities. Further, limited partners are often prohibited from selling their partnership interest to anyone other than a  family member, thus keeping the business in the family. Restrictions such as these, while necessary to meet the family's objectives, render a limited partnership interest somewhat unmarketable which severely depresses it's fair market value. Depressed market value means a smaller estate for the IRS to tax. FLPs carry significant consequences to the family, and should be tailored to the family's needs. Generally, family limited partnerships that carry the most significant restrictions are reserved to estates that exceed several million dollars.
   
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1450 Hughes Rd., Suite 215
Grapevine, TX  76051
817.329.1155

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Visiting this site does not create an attorney-client relationship. This site is intended to provide you with educational information that is very basic by its nature. Accordingly, you should seek out additional information on those subjects that apply to you. This information is prepared specifically for Texas residents and some material would not apply to residents of other jurisdictions. Every individual is unique. You should consult an attorney regarding your own situation.