Proper estate planning can take advantage of gift tax exemptions and control gifted assets as explained in an example by New Jersey 101.5 in "Benefits of a limited family partnership."
One of the reasons people seek estate planning advice is to lower potential estate tax burdens yet not limit the ability to manage assets and in a family limited partnership the general partner owns a 1% share of the partnership and the other 99% is given to other family members. The general partner, however, has full control over the management of the partnership and its assets.
Because ownership is limited to family members assets transferred through a family limited partnership receive a discount for gift tax purposes. Essentially the gift tax exemption can be stretched further than if assets are given away directly.
The family limited partnership can be used to give family members extra income now or to allow wealth to grow for later use.
An estate planning attorney and probate attorney can guide you through a family limited partnership.
The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area. For more information and to learn about our firm, visit Nickerson Law Group’s website. www.estateplanningaustintexas.com
Reference: New Jersey 101.5 (May 18, 2016) "Benefits of a limited family partnership."