Family Limited Partnerships
It is absolutely amazing how few people who can benefit from FLPs actually have them.
FLPs are not a primary estate planning tool (those are your wills and marital or A&B trusts), but FLPs can nicely supplement an estate plan and save your heirs sometimes millions of dollars in estate taxes if done correctly.
FLPs are also a vital tool when trying to protect wealth from creditors. Assets owned in your own name are subject to creditors. When assets are owned by a properly set-up FLP, they are not.
To read about the asset protection features of FLPs, please click here.
When it comes to “advanced” estate planning, FLPs are almost always a tool that is utilized. Why? Because FLPs can lessen the value of your assets for both gift and estate tax valuation purposes.
If you have an estate of $1,000,000 or more, you are probably a candidate to use an FLP for asset protection purposes.
If you have an estate of $10,000,000 or more (and this includes proceeds from life insurance contracts not owned by an ILIT), you are a candidate to use an FLP for both asset protection and estate planning purposes.
If you would like to download a five-page summary more fully explaining the use of FLPs for estate planning purposes, please click here.