Family Limited Partnership attorneys in Scottsdale, AZ – Magellan Law
Family Limited Partnerships, often called FLPs, are usually used to protect a person’s assets from creditors and eventually move wealth or money to another generation. These limited partnerships are used to: (a) protect assets from creditors; (b) centralize management of multiple business enterprises; and (c) allow a way to reduce the size of a person’s taxable estate. An FLP must have at least one General Partner, also known as a GP, and this person, or named entity, is responsible for managing the partnership. The GP has total control over the FLP. There can also be one or more Limited Partners (also known as LPs). An LP can benefit from the family limited partnership financially but does not have any control, influence or marketability of the FLP. (Consequently, the limited partner’s interest in the Partnership is protected from that person’s creditors.) Only family members can be listed as a GP or LP, hence the name Family Limited Partnership.
There are many ways to properly structure a Family Limited Partnership, so it’s very important to speak with an experienced estate attorney to discuss details about your family situation and your future objectives. At Magellan Law we have the experience you can trust to set up all of your family’s roles and responsibilities. Call us today for a private and confidential consultation.