A limited partnership has one or more general partners and one or more
limited partners. The general partner(s) have the same rights and liabilities of a partner in a general partnership – they manage the partnership and have unlimited liability for partnership debts. The limited partners have very limited rights to participate in the management of the partnership. They cannot play an active role in managing the partnership. Their liability is also limited to their investment in the partnership, as limited partners aren't personally liable for partnership debts. As owners of the partnership, the partnership income or losses pass directly to them for tax purposes. The family limited partnership (FLP) is a limited partnership that only has family members as partners. Ordinarily, the husband and wife are the general partners and they control the FLP. The family limited partnership's limited partnership interest may be owned by the parents, other family members, or by other family controlled entities, such as one or more trusts or LLCs. You can easily restructure an FLP to maximize your lawsuit protection, minimize estate taxes and achieve other estate planning objectives.