What are the benefits of an FLP?
Among the benefits are: Centralization of Management – An FLP fractionalizes ownership while management remains centralized. Facilitating Intra-Family Transfers – FLPs ease the transfer of interests in family business assets from one family member to another. For example, a parent would be able to 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. Discounts – In most 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, possibly saving transfers taxes. Avoiding and resolving family disputes – FLPS provide a means to resolve existing or future family disputes, thereby making it more likely to avoid these disputes entirely.
