Family Limited Partnerships
Gift & Estate Tax Valuations
If you are taking steps towards estate planning, you have likely realized
that transferring your wealth to your children or grandchildren can be
very costly, unless you plan ahead. This is due to the estate and gift
taxes, as well as transfer taxes, which can cause your hard-earned money
to go to frustrating taxes, rather than loved ones and family members.
The good news is that you do have legal options to help limit these taxes,
including:
- Family-limited partnerships
- Limited liability companies
You have spent many years working hard to earn your wealth. Trust
Gibraltar Business Valuations to help you employ tools that will minimize taxes on that wealth. Call
us today or
contact us online!
Should I Create a Family Limited Partnership?
The main reason you may want to form a family limited partnership or limited
liability company as a legal entity is to intelligently manage family
wealth. A partnership or LLC can be used as a tool for wealth transfer planning.
Establishing a family partnership or LLC is complex, and the success of
one depends on a number of different variables. That is why our
business professionals are here to assist you with these matters.
We put together specific strategies to help you avoid tax obstacles, using
family-limited partnerships and limited liability companies to allow for
a larger amount of assets to be transferred without incurring seemingly
insurmountable taxes. If you are interested in creating a partnership
as part of your estate plan, reach out today.
How Does a Family Limited Partnership Work?
Generally, the owner (you), contribute assets to the family limited partnership
or limited liability company in exchange for ownership units in the partnership
or LLC. You then gift ownership units to your children or grandchildren,
transferring wealth out of your estate and into the hands of family members.
This allows for the transfer of wealth at discounted amounts and helps
to minimize gift and estate taxes.
As general partner, you, the donor:
- Controls what cash the limited partners receive
- Determines what abilities the limited partners have
- Retains control over the partnership assets
Employing Careful Planning Techniques
There are many different factors to consider, which we will explain thoroughly when you
make an initial appointment.
It is important to understand that limited partnership documentation is
very specific and must be drafted by an
experienced professional. A business and tax expert from
our team can offer thoughtful planning and financial resources to help you understand
your options.
Please call our office now at (855) 231-1401 or
contact us online to get started!