The Family Limited Partnership


How to Transfer Your Business (and Other Assets) to Your Children Without Losing Control

If your estate is large enough to pay estate taxes when you die, you may need some additional planning. One option that is very popular with business owners is the family limited partnership.

A family limited partnership will let you remove the business, and any future appreciation on it, from your estate now, and still keep some control. It is especially useful when the business might otherwise have to be liquidated to pay estate taxes. (Stocks, real estate or insurance can also be used.)

Here's how it works. When you set up a family limited partnership, you transfer the assets into the partnership in exchange for partnership shares. You keep the general partner shares and, over time, you can gift limited partnership shares to your children, removing the value of the gifted partnership interests from your estate.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Kevin L. Von Tungeln, Thompson | Von Tungeln, A P.C. | Attorney Advertising

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