An asset can have more than just monetary value to your family. A business, a farm, a homestead or a vacation home can serve to keep family members together for a worthwhile purpose. An increasingly popular way to keep assets in your family is to create a family limited partnership (FLP) or Family Limited Liability Limited Partnership (FLLLP).
At Morris, Hall & Kinghorn, P.L.L.C., our attorneys help families in Arizona and New Mexico preserve family assets for generations to come though family limited partnerships, trusts and other estate planning techniques. We will take the time to evaluate your assets and your goals and determine the best way to preserve your legacy.
What Is a Family Limited Partnership?
A FLP or FLLLP is an entity that holds property for the members. That property may include an ongoing business, real estate, securities and other types of assets. An FLP or FLLLP allows family members to share costs and benefits of an asset. If properly created, it can also greatly reduce estate taxes for a valuable asset by discounting the partnership interest.
The management attributes of an FLP or FLLLP permits a family to place its financial assets into a vehicle that allows parents to control decision-making, but allow junior generations to participate with an increasing level of responsibility. This helps train the junior generations to manage the property when the time comes.
.Maintaining family business and investment assets intact through generations and the ability to consolidate financial reporting are additional management benefits of FLPs and FLLLPs.
Protecting Your Family's Legacy
Family limited partnerships provide protection from creditors of the partnership or the individual members, as well as from family issues such as divorce. For even greater protection, the entity can be titled in a beneficiary trust. Titling an entity in a beneficiary trust protects it from creditors, ex-spouses, personal bankruptcy and spend-down for long-term care.
You only have one family and one legacy. Let us help you preserve it. For more information about protecting family assets in Arizona and New Mexico, contact us to arrange a consultation with an experienced lawyer today. Our offices are located in Phoenix, Tucson, Albuquerque and communities throughout Arizona and New Mexico.
