FAMILY LIMITED PARTNERSHIPS
Family Limited Partnerships are effective at minimizing estate taxes and facilitating the transfer of wealth to the next generation. Creating a Family Limited Partnership, in fact, is a well-tested and proven means of lowering or eliminating estate taxes altogether on the assets you have accumulated over your life. And there are other non-tax reasons to consider them in your estate planning, as well. For instance, it may be preferable to transfer a portion of ownership in a Family Limited Partnership to a younger family member than to transfer outright ownership in an asset.
Establishing a Family Limited Partnership and transferring assets to it prior to death may reduce the likelihood of disputes about the distribution of the estate assets.
The decision to create a Family Limited Partnership is not irrevocable. You may at any time terminate the partnership and suffer no tax consequences. This is one huge advantage that a Family Limited Partnership has over other types of entities you may be considering.
Contact Robert Rosen if you are interested in discussing how a Family Limited Partnership could fit into your estate and wealth transfer planning.