Asset Protection 101

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The Family limited partnership (FLP) is an excellent estate planning strategy and asset protection strategy. The Family limited partnership (FLP) can also help you with income tax deduction.

Reducing estate tax – estate tax planning

To use The Family limited partnership (FLP) as a tax planning and estate planning tool, you can gift small The Family limited partnership (FLP) shares to your children each year so that the size of your taxable estate is smaller when you die. You can max out the gifting limit and no gift tax is due.

Will you lose control of your The Family limited partnership (FLP) if you gift some The Family limited partnership (FLP) shares away?

No. Control of your assets in the Family limited partnership (FLP) is under your general partner. In the above example, the general partner of your The Family limited partnership (FLP) is your spouse.

The value of your remaining interest in your The Family limited partnership (FLP) is further reduced for estate tax purposes because it is not a controlling interest.

Overall the Family limited partnership (FLP), is an excellent asset protection tool of many asset protection strategies that works very well to your advantage. The Family limited partnership (FLP) is also useful for estate planning and tax deduction if used properly.