Many surviving family businesses across multiple generations feature family limited partnerships.
We advise many of our clients to establish family limited partnerships because it is a powerful estate planning tool that enables a smooth, tax-efficient transfer of business ownership among generations.
What is a Family Limited Partnership?
A family limited partnership is a holding company owned by two or more family members to retain a family’s business interests. While it is practical for families to form partnerships in the form of limited liability companies, the case is different with family limited partnerships. This organizational structure is ideal for creditor protection and reduction of estate and gift taxes. It enables family members to run your empire even in your absence with lesser risks.
Benefits of Family Limited Partnerships
If you want to cushion your family from business risks, we endorse an estate plan that features a family limited partnership. It comes with well-defined roles for each member of the family, making it easy to make investment decisions and exercise more business control.
Pence Wealth Management is staffed with advisors for family businesses that are looking forward to building a legacy. With family limited partnerships as a considerable option for family-owned businesses today, we help in drafting memorandum and articles of association, the crucial documents that dictate the operations of any limited partnership.
If you have further inquiries about family limited partnership, please feel free to get in touch with one of our wealth management professionals.
Pence Wealth Management and LPL Financial do not offer legal services. Please consult your legal advisor regarding your specific situation.