Tax Services:

Family Limited Partnerships

A Family Limited Partnership (FLP) is a popular estate planning tool that allows a donor to transfer wealth to reduce estate tax costs while retaining substantial control over that wealth.  While they have many attractive features and benefits, many variables and complexities are also involved; FLPs may not be appropriate for everyone. Sisterson is a firm that understands the complexities and has the experience to assist clients in analyzing the variables. We can guide clients toward the most effective planning tools for their situation.

Our tax department has extensive experience in all areas of partnership taxation, including both tax and non-tax issues related to FLPs, as follows:

• Formation and structure of the FLP
• Operating the FLP
• Using FLPs to minimize transfer taxes
• Maximizing asset protection benefits
• Retaining control over transferred assets by senior family members
• Transfer of FLP interests to junior family members
• Planning for appropriate assets to transfer to the FLP
• Asset valuation discounts
• Income shifting to lower tax bracket family members
• Using trusts as partners
• Transfers of stock of controlled corporations
• Effect on partners of pass-through income or loss
• Maximizing the annual gift tax exclusion and estate and gift tax unified credit using FLPs