What are the benefits of establishing a family limited partnership?

A family limited partnership (FLP) is a type of estate planning structure that has become popular in the state of Virginia. It provides a number of benefits to families that want to pass down their wealth in an efficient and organized manner. One of the primary benefits of establishing a family limited partnership is that it removes the assets from the individual partner’s estate. That means that the assets are protected from any potential debts or liabilities that the partner may have. It also allows the partner to have more control over their assets since they are no longer part of their personal estate. Another benefit of an FLP is that it can reduce the amount of taxes that the partner’s estate might have to pay. When assets are passed down to family members, they typically will be subject to estate taxes. However, when they are placed in an FLP, these taxes can be greatly reduced or even avoided. This is because the FLP is treated as an entity separate from the partner’s estate. Finally, an FLP can provide some assurance that the assets will be managed in the most efficient manner. With an FLP, all of the partners must agree on how the assets are managed. This ensures that decisions are made with the overall interest of the family in mind. Overall, establishing a family limited partnership in Virginia can be an excellent way to pass down wealth to the next generation in an organized and tax-efficient manner.

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What are the benefits of establishing a family limited partnership?

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