Family Limited Partnerships
Help with Family Limited Partnerships in San Marcos, CA
Also Serving Surrounding Communities of Vista, Oceanside, Escondido, and Carlsbad
Perhaps your San Marcos based real estate business netted your family a small fortune, and you want to establish a legal structure to protect your assets and property, simplify your legal needs, and ensure that your children and grandchildren will enjoy the fruits of your labor. Alternatively, maybe your family owns numerous brokerage accounts, trusts for children and grandchildren, and other documents, and you would like to combine your investments into a limited partnership to enjoy tax benefits, flexibility, and greater control.
The Advantages of the Family Limited Partnership
Consider establishing a family limited partnership, also known as an FLP. This partnership allows family members to manage money, property, corporate stock, cash, and other assets in a flexible, profitable way. Depending on the structure of your FLP, you can shield significant assets from creditors, enjoy a certain amount of flexibility that other trusts cannot provide for you, and amend the partnership as needed — for example, if one of your children gets divorced, you can prevent the ex-spouse from claiming a large share of your family’s assets.
Partners in FLPs are classified as either general partners or limited partners. The general partners – often grandparents or parents who want to preserve and shield assets for the next generation – are 100% liable, and they control management of the partnership as well as the investment choices. The limited partners are limited in their liability, but they cannot manage the partnership. When you transfer the assets of an FLP to family members, you can enjoy benefits such as:
- Possible exclusion from the annual gift tax;
- Shielding an estate from certain federal and state taxes;
- Protect holdings from creditors or future creditors or estranged spouses;
- Reducing investment fees (because the investments are combined);
- Streamlining your accounts to minimize fees and bureaucracy and to reduce potential for errors or omissions.
Bridging the Challenges and Coming to Consensus
If your family is like most families, then you may find it difficult to reach a consensus about how to establish a trust, minimize your collective frustration, maximize your protections, and ensure that all members of the family understand their roles and obligations.
Connect with the team at the Law Office of Darius Khayat for substantive, knowledgeable, compassionate guidance. Our team can help you problem-solve, structure your FLP to meet your family’s financial needs and adhere to your firmly held values and principles.
The Law Office of Darius Khayat serves San Marcos as well as surrounding communities, including Carlsbad, Vista, Escondido, and Oceanside. Call us now: 760-591-0245.