Definition of a Family Limited Partnership
A relatively new form of limited partnership - the family limited partnership (FLP) - has also gained popularity in recent years. The FLP is more of a wealth transfer strategy than a business structure. The FLP allows individuals to transfer personal or business assets into a partnership. Then, they can grant limited ownership interests to their children or other family members. This not only lowers your estate's taxable value, it also ensures that certain assets remain in the family.
LegalZoom's education center provides you with general information about LPs and FLPs. We outline their advantages, disadvantages, and how they compare to other business structures and estate planning options, such as limited liability companies or irrevocable trusts.
If you decide to form an LP or FLP, LegalZoom makes it easy and affordable. Simply answer a few questions online, and LegalZoom's online questionnaire will guide you through our convenient process. We'll complete all of the legal documents you need and even file them with the Secretary of State.