What Is a Family Limited Partnership?
A family limited partnership (FLP) is a business entity formed by family members to hold, manage, and transfer assets across generations. FLPs are widely used in Florida for estate planning, asset protection, and tax-efficient wealth transfer.
Structure
- General partner: Manages the partnership; typically a parent, family trust, or LLC
- Limited partners: Hold ownership interests without management authority; typically children or trusts for their benefit
- Partnership agreement: Governs operations, distributions, transfers, and dissolution
Estate Planning Benefits
- Valuation discounts (20-40%) on transferred interests reduce gift and estate taxes
- Appreciation shifts to younger generation, reducing the senior generation's taxable estate
- General partner retains management control while transferring economic value
- Pass-through taxation avoids double taxation
Asset Protection
Florida law limits a creditor's remedy against a limited partner's interest to a charging order, which entitles the creditor only to distributions (if any are made) without granting management rights or the ability to force a sale of partnership assets.
Related Terms
- Estate Planning — FLPs as estate planning tools
- Equity — Ownership interests in the partnership
- Contract — The partnership agreement
Barnes Walker Estate Planning
Barnes Walker's estate planning attorneys structure family limited partnerships for Florida families to protect assets and minimize estate taxes. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 620
Governs the creation and operation of limited partnerships and limited liability limited partnerships in Florida.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC