family limited partnership

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family limited partnership (FLP)

A special type of limited partnership recognized by some states as an estate planning tool. A donor establishes a family limited partnership and then transfers into it property expected to appreciate in value over the years. The donor then makes gifts of small percentages of the partnership to children or other family members. The gifts are small enough to escape gift taxes and may be doubled if the donor makes the first gift to the spouse, and then each of them makes gifts each year.As the property grows in value,the appreciation belongs to the person receiving the gifted shares and so is not in the donor's estate at death.

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The techniques I am referring to are sales to an irrevocable grantor trust and the establishment of family limited partnerships.
72 percent limited interest in the family limited partnership to his surviving spouse.
gifts of--interests in family limited partnerships (FLPs), as well as the composition of those FLPs at the time of the transfer.
the government in a number of family limited partnership cases.
Question--Will the LLC replace the family limited partnership as an estate planning tool for family business and investments?
DFA owned 50 percent of the voting interests in Southern Belle and the family limited partnership owned the other 50 percent.
In one of the scenarios, they demonstrated how gifting minority interests to the children, creating a family limited partnership to hold business real property, and doing a sales-and-leaseback of the principle residence provided a savings of $2 million dollars in death taxes to the heirs of a family-owned business.
The property sold for $3,700,000 to Janosz Family Limited Partnership of San Diego.
The family limited partnership must pass the "assignment-of-income principle" test to be treated as such.
Simms, we will take a more in-depth look at the use of the Family Limited Partnership as a viable tool for the transfer of family wealth.
The receiver is 322 East Center Street LLC, an affiliate of The Battaglino Family Limited Partnership, which also owns the adjacent River Bend Country Club.

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