Family Limited Partnership Reports

Our FLP Reports will help you efficiently transfer property. This is necessary to obtain appropriate discounts:

  • Owners of Businesses, Real Estate, and Marketable and non-Marketable Securities can transfer property to their children, grandchildren or favorite charity and significantly reduce estate and gift taxes.
  • Parent controls as G.P., child or grandchild or charity is a L.P.
  • The value of the asset - the limited partnership interest - may be discounted (by an Appraiser) when computing the gift tax.
  • Theory - the L.P. interests are worth less since the L.P. has no control over the Partnership’s activities and the interests are not marketable.
  • Use Family Limited Partnerships as a tool for (1) asset preservation, (2) estate planning, (3) family transfers, (4) charitable giving, and (5) income tax planning.
  • Considerations:
  • Form the L.P. while the Owner or investor is in good health and has a reasonable life expectancy. Establish the L.P under state law and run it like a business, preferably with a corporate G.P. that has a Board of Directors.
  • Consider adult children or independent 3rd parties as G.P. for key decisions to avoid investor having too much control. Mandate distributions of income.
  • Document the purpose of the L.P. - Show non-tax reasons, such as protection of assets from creditors.
  • Transfer only business or investment assets - not personal residences or vacation homes - into the L.P.
  • Give the investor a minority interest, or less than a controlling interest in the corporation/G.P., to restrict the investor’s ability to dictate how the L.P. distributes income.
  • The investor/G.P. should not be dependent on L.P. distributions for living expenses.
  • Document the amount of the gift on the tax return with an appraisal.





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