What are some of the benefits of an FLP?
Among the benefits are: (1) Centralization of Management An FLP permits ownership to be fractionalized while management remains centralized. (2) Facilitating Intra-Family Transfers FLPs can make it easier to transfer interests in family business assets from one family member to another. For example, a parent can transfer a specified percentage of a collection of business assets (in other words, an interest in the FLP) to each child, rather than multiple transfers of specific assets. (3) Discounts — In many cases, the FLP interests owned or transferred by a family member are valued at less than the underlying assets would be valued if the partnership did not exist, potentially saving transfer taxes. (4) Avoiding and resolving family disputes FLPS can provide a means to resolve existing a future family disputes and make it more likely to avoid these disputes entirely.
