Family Limited Partnerships

Protecting the Family Estate From Liabilities of the Business

The estate planning lawyers of Cushing & Dolan, P.C., can advise on the merits of forming a family limited partnership (FLP) for liability, tax and succession purposes. It can be advantageous for certain high net worth clients to isolate appreciable assets, such as business interests, real estate, or marketable securities.

To discuss the pros and cons of a family limited partnership, contact attorneys with a strong foundation in business law, estate planning and taxation. Our Boston law firm advises families in Massachusetts and New Hampshire.

Boston Family Business Law Attorneys

A family limited partnership, or FLP, provides for joint ownership of family assets such as a family-run business. As limited partners, family members have limited personal liability. This makes an FLP especially prudent for owning a high-risk business (for example, a waste management company) that would otherwise expose family members to lawsuits and creditor claims against the business entity.

Fractionalizing the family business through a family limited partnership also offers distinct estate planning advantages:

  • First of all, it expands opportunities for gradual gifting of a parent's ownership stake to the next generation. (The annual tax-free gifting allowance is $13,000 per heir.)
  • Furthermore, the valuation of the business assets in an FLP is discounted at succession for estate tax purposes because a fractional interest in a business is not as liquid as other inherited assets.

Family Limited Partnerships and Other Business Succession Strategies

Call Cushing & Dolan at 617-523-1555 or e-mail us to arrange a free consultation. We have eight office locations in Suffolk County and the Greater Boston area.