Minnesota Family Limited Partnerships Lawyer

Conserving assets during generational wealth transfer

A Family Limited Partnership (FLP) is as an asset protection tool that allows you to maintain family ownership of a business.  As a shareholder in the business, you may transfer or receive shares of the FLP to or from other shareholders of the FLP without incurring financial liabilities, so long as the transfer is characterized as a gift.  Only when the shares are liquidated will you be taxed for their value as income.

The FLP operates in much the same way a Limited Partnership does by allowing the business partners to behave as equity stakeholders in the entity.  A General Partner owns and operates the business or investment account. Limited Partners each own shares in the business.  Each year, the Limited Partners may gain the benefit of gift tax exemptions when the General Partner makes gifts of shares of the FLP to each of the entity's Limited Partners.  This tax-minimization strategy allows a greater portion of a family's wealth to be transferred between generations at substantial discounts for federal gift and estate tax planning purposes. FLPs also provide superior creditor protection for its members.

An FLP can be used in conjunction with any of the following types of asset allocation strategies:

• Trusts and estates
• Business succession plans
• Real estate investment trusts

Call (763) 416-1672 or contact us online to schedule a free initial consultation.