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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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.
threat to the viability of the family limited partnership as an
The family limited partnership had the right to sell Southern Belle at any time, including DFA's interests.
Toth, Claire, "The Family Limited Partnership Under Siege" (WG&L), Taxation for Accountants (59: 6, 1997: 346-350.
There are some disadvantages to the family limited partnership.
An estate planner's guide to family business entities; family limited partnerships, limited liability companies, and more, 3d ed.
Summit Church of North Little Rock acquired the land from the Witkowski Family Limited Partnership LLC, led by Ruth Witkowski.
Until the advent of the Family Limited Partnership (FLP), there was little else readily available or practical for the mid-size estate.
Possible Ramifications on Transfers of Family Limited Partnership Interests
CEOs who don't want to deal with the shortcomings of the QPRT have two other alternatives: One is to put it into a family limited partnership, in which you retain a general partnership interest.

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