Family Limited Partnerships

Family Limited Partnerships are preferred vehicles for transferring assets from your estate to your children while leaving you and/or your spouse, as general partners, in total control of your transferred assets.

  1. Reduce or Avoid Estate and Gift Taxes. You may gift up to $11,000 per year to anyone without paying gift taxes. Joined by your spouse, you may gift up to $22,000 per child. If you have five children as I have, you and your spouse can gift up to $110,000 per year to your children (actually, you can gift more to a family limited partnership because the fair market value of a family limited partnership is less than its face value because your child would have difficulty selling its share). We typically value a $25-28,000 gift to a family limited partnership at $22,000. Once your assets exceed your $1,000,000 exemption, anything you transfer to your children by way of gifting to the family limited partnership saves such assets from a 54% estate tax.

  2. Asset Protection. Once you have transferred your assets to your children as limited partners, such assets are no longer yours and are therefore out of the reach of your creditors and safe from bankruptcy.

7109 S. Highland Dr., Ste. 201, SALT LAKE CITY, UT 84121 - PHONE: (801) 438-1222 - FAX: (801) 438-1225