What is a family limited partnership?

A family limited partnership (FLP) is a type of asset protection law in Washington state that allows family members to jointly own assets while limiting their liability. It is similar to a limited partnership (LP) but with some added benefits. An FLP is organized on a state-level with the filing of Articles of Organization, similar to a corporation or LLC. This creates a legal entity, which is then owned by the family members. There are two different types of members – general partners, who have management control, and limited partners, who can only contribute capital to the partnership. The latter are not liable for any debts or obligations of the partnership. The primary benefit of an FLP is that the partners can share in the ownership of the assets and protect them from creditors. This is because the partnership is considered a separate and distinct legal entity, with its own rights, obligations, and liabilities. Therefore, any claims made against the partnership are not made against the partners. An FLP can also be an effective way to transfer assets to family members, such as in an intergenerational transfer, as the tax benefits are more favorable than other methods. In addition, the FLP is easy to set up and run, and it is often less expensive than a corporation or an LLC. In short, an FLP is a type of asset protection law in Washington State that helps families protect their assets from creditors, as well as offering tax and other benefits.

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What is a family limited partnership?

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