Family Limited Partnership (FLP)

A Family Limited Partnership (FLP) is a legal entity often used by family offices to manage and transfer wealth across generations. It typically consists of general partners, who control the partnership and make management decisions, and limited partners, who own passive interests without direct control. FLPs are commonly employed for estate planning purposes, allowing families to consolidate assets, reduce estate taxes, and protect wealth from creditors. By transferring limited partnership interests to heirs, families can leverage valuation discounts for gift and estate tax purposes while retaining control over the assets through the general partnership. FLPs are critical tools for preserving wealth and ensuring its efficient transfer within high-net-worth families.