The Family Limited Partnership

The family limited partnership is not only a great tool for protection your assets, but it can also be used as an organization structure for a family business you intend on keeping in your family.

Many families increasingly establish a family limited partnership rather than any other entity, such as a corporation or limited liability company because it is better suited for achieving certain family motivated objectives.  That is:

• Retaining control of a family business or investment assets by senior family members.

• The ability of the family limited partnership to have a succession plan inherent in its structure where the business interests and/or assets and management pass down through the family.

• The ability to transfer assets (wealth) of the family between generations with reduced cost in estate and gift taxes.

Formation of the Family Limited Partnership

Like the limited partnership, the family limited partnership follows the formalities of filing with the state.

A family limited partnership is created by filing a certificate of limited partnership or certificate of organization or registration statement with the state.  The state then issues a charter acknowledging the family limited partnership's formal existence.  Most state filings include the:

• A name for your limited partnership.

• An address.

• Name and address of the general partners.

• Name and address of the resident agent.

• General activities or purpose of the limited partnership (in some states a statement of 'any lawful business which may be conducted by a limited partnership will suffice).

• Mandatory dissolution date.

Remember that funds and other assets belonging to the family limited partnership must be kept separate and apart from your own funds, as well as funds belonging to other entities, because it is viewed in the eyes of the law as a legal entity separate and apart from its owner(s).

Contact The Presser Law Firm, P.A.  with questions regarding the family limited partnership – we would be happy to provide you with a complimentary preliminary consultation.

YES, YOU CAN LOSE EVERYTHING!

You may think that your wealth is safe and that you don't need protection.  But don't delude yourself and accept reality — for every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!