What is a family limited partnership and how can it provide asset protection benefits?

A family limited partnership (FLP) is a type of asset protection law commonly used in West Virginia. FLPs are used to protect assets from creditors while still providing family members the opportunity to manage their financial assets. In a FLP, assets are transferred to a business entity called a Limited Partnership. The partners can be family members, and the assets are then owned by the partnership. The partners then become the managers of the partnership. A FLP also provides certain benefits and protection that are not available to those who simply own the assets directly. For example, a FLP allows assets to be distributed among family members, reducing the risk of all family assets being taken by creditors in the event of a lawsuit. A FLP also limits the liability of each partner to the amount of investment that partner has made. This means that if a partner loses money, their liability only extends to the amount of their own investment, and not to the assets of the partnership. Another advantage of establishing a FLP is the ability to transfer assets from one generation to the next with little or no tax implications. The partners of the FLP can also receive discounts on the transfer of assets, enabling them to pass on more assets to the next generation. Overall, a family limited partnership is one of the most popular asset protection strategies available today. It allows families to protect their assets while still allowing them to manage their financial affairs. It also provides certain tax advantages, making it even more attractive to those looking to protect their assets.

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What is a family limited partnership and how can it provide asset protection benefits?

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