A family limited partnership (FLP) can be a valuable estate planning tool. Family limited partnerships allow families to control and manage assets while limiting liability for most partners. Forming a family limited partnership can also help consolidate assets, lower income taxes, and make it easier to transfer assets. That said, there are complex legal issues related to family limited partnerships in Arizona, which is why you should seek help from an attorney to help you form such a partnership.
The Arizona estate planning lawyers at Pennington Law, PLLC can provide guidance and legal representation if you want to form a family limited partnership. Our attorneys have over 25 years of legal experience and received numerous honors for their work, including a “Litigator of the Year” award in 2021 for lead attorney and founder Andre L. Pennington.
We would be happy to explain a family limited partnership, how it works, your other legal options, and how to form such a partnership. We can handle all the necessary legal work and answer any questions. Call Pennington Law, PLLC today or visit our contact page for a free case review.
What Is a Family Limited Partnership?
Family members create a family limited partnership to manage and transfer assets, particularly for estate planning. In an FLP, family members contribute assets and become limited partners, while one or more family members act as general partners and manage the partnership.
The general partner or partners have full management rights and make critical decisions about the partnership’s assets. Limited partners own a percentage of the FLP’s income and assets but have no management rights or control over the FLP. The partners in an FLP can be family members or business entities they control.