Family Limited Partnership
A family limited partnership or FLP is a type of limited partnership structure specifically designed to hold the assets of a family in which the family members are limited partners in the business.
An FLP is sometimes structured by a family office that provides wealth management services to the family. It differs from a family trust in that it is a business in which family members are actual shareholders. A trust is managed by a trustee and family members are simply beneficiaries in the trust.
An FLP is often used as a vehicle for estate planning because shares in the FLP can generally be transferred from one family member to another, or gifted to family members over time, at lower tax rates.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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