The family limited partnership (FLP) is a classic technique to shift income and wealth to your children and future generations. We began this structure with a client about 25 years ago. Ownership in income-producing real estate now includes both the children and grandchildren of Mom and Dad, who were my initial clients. No estate tax was owed upon either parent’s death — ownership was transferred to their children and grandchildren. Income is shared with future generations.
This transfer of wealth was made in a very tax-efficient manner, as the FLP operates as an ongoing legacy for this family. The FLP continues to grow and recently expanded into another state, taking advantage of opportunity zone tax benefits.
