FLPs as option for family-owned businesses?
Are you a family-owned business looking to maximize tax benefits and protect your assets?
Consider the advantages of Family Limited Partnerships (FLPs). FLPs are a popular estate planning tool that allows family members to pool their resources and jointly own assets while enjoying tax benefits and asset protection.
Some benefits of FLPs to consider include:
- Tax Efficiency: FLPs offer significant tax advantages by allowing income and tax deductions to flow through to individual partners’ tax returns.
This can result in lower overall tax liabilities for the family business.
- Asset Protection: By transferring ownership of assets to the partnership, you can shield them from potential creditors and legal claims.
- Succession Planning: FLPs provide a flexible framework for transitioning ownership and management of the family business to future generations.
You can gradually transfer partnership interests to younger family members while maintaining control and oversight.
- Estate Planning: FLPs can allow you to transfer wealth to heirs while minimizing gift and estate taxes.
You can also implement wealth transfer techniques, such as valuation discounts and fractional interest discounts.
Family Limited Partnershipsoffer family-owned businesses a powerful combination of tax benefits, asset protection, and succession planning advantages.
Locally The Estate, Trust & Elder Law Firm specializes in educating and helping individuals and family-owned business owners protect what they have for the people they love the most.Visitto schedule afree consultationor to register for afree workshop, where you can learn more about how we can help you and your family and business.
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