Advanced Asset Protection Through Family Limited Partnerships
Managing a large estate with extensive family holdings can be challenging — much like managing a business with many different interests. By establishing a family limited partnership, a family's assets can potentially be protected against future creditors, while potentially saving substantial taxes on the estate.
The Houston law firm of Robert M. Mendell, Attorney at Law, P.C. works closely with families to determine whether an FLP is the right option and how one or more family limited partnerships should be structured for maximum value.
An FLP Can Protect Assets, Lower Taxes and Aid in Succession Planning
A family limited partnership is a state law limited partnership, where all or almost all partners are family members (or other legal entities owned by family members). Texas families use family limited partnerships particularly when they have large estates and their objectives include asset protection, U.S. estate tax and gift tax reduction, protection against failed marriages, preservation of centralized management and investment stratagems, and simplified family gifting of diverse assets, among possibly other important benefits. Robert M. Mendell, with over 35 years of experience, is an Attorney CPA and a Board Certified Tax Attorney. Mr. Mendell has substantial expertise and experience in family limited partnership structuring, planning and implementation.
- A family limited partnership can provide significant protection from claims of outside third parties. A creditor of an FLP partner generally can only obtain a so-called "charging order" remedy (as opposed to a so-called "turnover order" remedy) against the assets held in the family limited partnership.
- The FLP can save on estate taxes because assets belong to the partnership, not to the individual partners. Thus, potentially creating substantially discounted values for the partner's partnership interest in the FLP.
- Succession planning can ensure the long-term viability of the FLP and any other family-owned business.
Robert M. Mendell, a Board Certified Tax Attorney and Lawyer CPA, has substantial expertise in the FLP area and is available to consult with you regarding a family limited partnership structuring for your family. Contact our office by e-mail or by calling 713-888-0700.