Summary

The Family Limited Partnership offers a unique capability to realize a variety of planning goals.

• Assets held in the FLP are effectively shielded from potential claims.
• Income taxes can be shifted to lower bracket family members or entities such as corporations and trusts to take advantage of deferral and savings techniques.
• Estate taxes on accumulated wealth and future appreciation can be minimized or eliminated by gifting discounted interests in the FLP to children or trusts established for their benefit.

The FLP provides a convenient and flexible format as the cornerstone of your overall plan. In the succeeding sections we will see how Limited Liability Companies and trusts can provide additional opportunities to create asset protection and tax savings strategies.