Family Limited Partnerships Attorney in Boca Raton, Florida

If you're in the process of creating an estate plan, you're likely searching for ways to protect your assets, provide for future generations, and ensure that your wishes are honored. If, after reading this, you just thought to yourself, “Exactly!” then you might want to consider setting up a family limited partnership (FLP).  

With a strong foundation in both estate planning and business law, I provide clients with tailored advice on setting up and structuring family limited partnerships to achieve their specific goals. I’m Attorney Eric H. Light and I strive to provide the highest level of client service. As a family limited partnerships attorney in Boca Raton, Florida, I can assist you with your asset protection needs to enhance peace of mind for you and your family.  

Family Limited Partnership and Its Key Features

A family limited partnership (FLP) is a legal entity that allows family members to pool their assets for investment purposes while maintaining control within the family. This structure can be particularly advantageous for those who want to manage and transfer wealth to future generations efficiently.  

Here’s an overview of some of the key features of FLPs to help you understand whether or not this tool is right for you:  

• Structure and participants. An FLP typically includes two types of participants: general partners and limited partners. General partners have management control and assume liability, while limited partners have no management responsibilities and limited liability. This division of roles creates a flexible environment where family members can contribute according to their strengths and preferences. 

• Asset protection. One of the primary benefits of an FLP is asset protection. By transferring assets into the partnership, individuals can shield their wealth from potential creditors. Creditors cannot easily reach the assets held within an FLP, which provides a layer of security for family wealth. 

• Succession planning. Succession planning is crucial for ensuring that your estate is managed according to your wishes after you pass away. An FLP facilitates the transfer of wealth to heirs by allowing you to gift partnership interests over time. This gradual transfer can also help minimize gift and estate taxes. 

• Centralized management. Managing an estate can be challenging, especially when it involves multiple family members. An FLP provides a centralized management structure that simplifies decision-making. General partners can make strategic decisions on behalf of the partnership, ensuring consistent and efficient management of assets. 

• Flexibility and customization. Every family has unique needs and goals when it comes to estate planning. An FLP offers flexibility and customization to meet these needs. You can tailor the partnership agreement to specify roles, contributions, and distributions according to your family’s requirements. 

Establishing an FLP involves many complex steps that may require the assistance of a Boca Raton family limited partnerships attorney to make sure it serves the purpose you envisioned for it.

What Makes a Family Limited Partnership an Effective Estate Planning Tool?  

A family limited partnership is a popular estate planning tool among people who own assets that they want to share with their descendants. Many people appreciate this tool for its effectiveness and simplicity. All you need to do is set up an FLP with your descendants and transfer valuable assets into the entity. This tool allows you to distribute your wealth to heirs through limited partnership shares, with general partners retaining control over the FLP's assets. As a result, you can reduce estate and gift taxes and enjoy asset protection.  

Who Should Consider Setting Up a Family Limited Partnership? 

From my experience as a Florida family limited partnerships attorney, anyone who wishes to pass down their wealth to younger generations should consider an FLP. Usually, it’s someone in their 50s, 60s, or 70s who wants to involve their heirs in the management or enjoyment of a family business or assets.  

With an FLP, they can consolidate their family business and other assets under a unified structure. A family limited partnership can work well when used in conjunction with a business succession plan and other estate planning tools. To ensure that your FLP is set up properly to achieve your goals, you may need the assistance of a lawyer.   

As a Boca Raton business planning lawyer, I can review your specific situation and help you develop and structure an FLP in a way that fulfills your goals and provides you with the maximum benefits.