Need to Protect Your Family’s Wealth?
Family Limited Partnership Attorney Explains Benefits
Everyone wants to avoid taxes and maximize their saving. In addition to your income, the IRS can tax other forms of your wealth. Estate tax, gift tax and inheritance tax all reduce your legacy, which creates risk for families. Additionally, without proper planning, your businesses, property and other holdings may be at risk from creditor claims. However, you do not need to wonder about the future of your loved ones. Our family limited partnership attorney can create a business entity to safeguard your future.
Naming decisionmakers for your estate can place you in a sensitive situation where emotions may run high. Our estate law attorney can help you successfully establish a plan for your family’s assets without turmoil. At Arata, Swingle, Van Egmond & Goodwin, we have been drafting and administering partnerships for California residents for years. Through these years of experience, we know how to handle estates with respect and care. By consolidating brokerages, trusts and estates, you may be able to secure lower tax rates for generations.
What Is a Family Limited Partnership?
When you want to consolidate family finances, a family limited partnership (FLP) may be the answer. A FLP is controlled by your family members, who are considered partners, either general or limited. Limited FLP partners are considered investors only, having no management or decision authority. They therefore have limited personal liability for the company. General partners are personally liable for the company, and can also directly manage investments and make decisions.
Instead of taxing the FLP, the IRS requires partners to report deductions and income on their personal tax return. By creating this business entity, you may be able to minimize your taxes by drafting reports in proportion to interests.
However, the IRS may scrutinize your FLP if it does not serve a business purpose. Thus, when drafting and administering an FLP, it is important to have an experienced estate law attorney to minimize risk. Our estate lawyer can make sure your FLP has an established business purpose that conforms to expectations. Since FLPs are not shielded from lawsuits or judgements, our law firm can make sure your estate is properly protected. Furthermore, we keep up to date on the changes to California tax law to maximize the benefit of your partnership.
What Are the Benefits of a Family Limited Partnership?
If you or your loved ones have multiple trusts or legal protections, then they can be consolidated under an FLP. This single partnership can save your family a substantial amount of money in legal fees and time. In addition, by combining finances you may be able to avoid a host of other management fees altogether. A family partnership can simplify protections for everyone in your family and help secure your legacy.
There are many other specific benefits of establishing a FLP. They reduce the taxable estate of senior family members by transferring assets while maintaining control. An FLP may be eligible for an annual gift tax exclusion, reducing income, estate and gift tax. As long as assets are transferred to a family member, FLP shares can be discounted. Your assets are also protected from creditor claims or ex-spouses. While not free from a lawsuit, creditors are limited in their reach unless they have consent of a general partner.
Questions? Call a Modesto Family Limited Partnership Attorney Now
Confused over the complexity of your own or your family’s estate? Are you tired of paying gift or inheritance tax? Questions about preparing an FLP that is right for your needs? Each family has its unique set of challenges. At Arata, Swingle, Van Egmond & Goodwin we are committed to helping you. We have an intuitive approach and genuine care to protect the assets you have worked so hard for. Our estate lawyers can personalize your service to draft and administer a partnership that works for everyone’s best interest.
We can review your situation and see if forming an FLP is the right solution for you. Through an initial consultation, we can prioritize the well-being of your loved ones, making sure all your goals are met as well. Our law firm can help you decide if forming a business entity will save you time and money. While everyone has different objectives with their estate plan, no one wants to lose money. We can help. Call us today at (209) 522-2211 or contact us through our website.