All in the Family
Pellet, Jennifer, Chief Executive (U.S.)
Is a family limited partnership the right structure for you? BY JENNIFER PELLET
Billed as one of the most effective asset protection tools in a financial planner's arsenal, family limited partnerships (FLPs) have been touted as a way to safeguard assets while cutting income and estate taxes. But recent IRS challenges suggest they can also be very risky.
So which is it? Ultimately, whether an FLP proves an effective wealth transfer method or a dangerous IRS magnet depends on its structure and operation. As a limited partnership established among family members, an FLP lets a donor place assets into a partnership and gift noncontrolling interests to family …
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Publication information: Article title: All in the Family. Contributors: Pellet, Jennifer - Author. Magazine title: Chief Executive (U.S.). Issue: 207 Publication date: April 2005. Page number: 68. © 1999 Chief Executive Publishing. Provided by ProQuest LLC. All Rights Reserved.