A family limited partnership is a wonderful estate planning tool to obtain substantial tax benefits, achieve asset protection,and maintain control of assets.
1
Control Assets
Under a family limited partnership,assets are transferred to a partnership which has both general and limited interests. You can maintain control of the assets by owning the general partnership interest.
You can gift limited partnership interest while you are living,gaining estate tax benefits,while still maintaining control.
2
Asset Protection
There is a level of asset protection to the family limited partnership. If someone gained a judgement against the partnership-they could incur tax liability without receiving any assets.
They would no rights to the physical assets of the partnership,since they are controlled by the general partner.
3
Discounts in Value
With a family limited partnership, it is often possible to obtain discounted values for estate and gift tax purposes,substantially reducing the estate taxes.
Minority interest, lackmof marketability,and lockmin discounts may be considered to reduce the value of the taxable estate by 35% to 50% of the assets transferred
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