What Are the Key Issues of Family Limited Partnerships?

Posted byJVFSPosted inBusiness Valuations, Family Limited Partnership, FLP

When utilized correctly, Family Limited Partnerships can be very powerful estate planning and
asset protection planning tools. However there are a number of defects that can occur. The
following is a list of common defects in FLP structures, not in any particular order and certainly
not exhaustive:

  • Failure to Fund the FLP
  • Failure to Maintain the FLP
  • Failure to Follow Formalities
  • Non-Business Assets or Activities
  • Parent as General Partner
  • Parent as both General Partner and only Limited
  • Parent’s Living Trust as the General Partner
  • Individual as General Partner
  • Failure to Obtain Valuations

Should you need one of our credentialed professionals to assist you in understanding the issues and valuation elements associated with family limited partnerships or any other valuation or litigation needs, please call one of our credentialed professionals at (615) 822-8342 or contact us via email.