Tampa Family Limited Partnership Attorney
If you own a business, you may be concerned about how that asset will impact your estate after death. Your business interest may make up a substantial portion of your estate. After you pass away, your family may have to deal with a hefty estate tax if the total estate value exceeds the federal tax exemptions. There are many estate planning options that will allow you to preserve the value of your business interests, while also potentially reducing your tax burdens. One such option is creating a family limited partnership, or FLP. With an FLP, you can set aside business interests for your family, gain tax advantages, and protect your assets. Contact our experienced Tampa family limited partnership attorney today, we can help.
Who Should Have an FLP?
If you are considering creating an FLP, ask yourself the following:
- Do I want my business to stay family-owned?
- Does my business have a high net value?
- Will my family face substantial estate taxes after my death?
- Am I worried about my spouse’s creditors coming after my assets?
- Will gifts to my children or grandchildren surpass the federal gift tax exemption?
If you answered affirmatively to these questions, now is the time to think about creating an FLP. With your FLP, you can keep your valuable business within your family. An FLP can also help you save in gift taxes, and will reduce the estate tax your family could face in the future.
Generally, spouses create an FLP between themselves. You and your spouse will place assets into the partnership, thus removing those assets from your estate. A unique feature of the FLP is that you and your spouse can also serve as the general partners, managing those assets (in that case, an additional general partner may be required to help secure gift and estate tax benefits). You can also distribute partnership interests to your beneficiaries, such as your children or grandchildren. In fact, you can distribute the large majority of the FLP interests, while still retaining FLP tax advantages. This means your beneficiaries will receive a higher value on the gifted assets. Contact our Tampa family limited partnership attorney for more information.
Protecting Your Assets
Beyond reducing your estate for tax purposes, your FLP can also protect your assets from creditors. Since you and your spouse are the general partners, the law prohibits creditors from seeking your partnership assets to pay off personal debts. The type of asset protection can be especially valuable if the FLP has considerable value. Regardless of your financial needs and goals, preserving your business interests in a partnership can benefit you and your family for generations to come.
Contact Our Tampa Family Limited Partnership Attorney
If you want to pass along your business interests to loved ones, or are concerned about your future estate tax burden, contact David Toback, Attorney at Law today. David Toback has been helping Tampa residents solve their estate planning problems for nearly 20 years. With his extensive tax and estate planning experience, you can rest assured that you will receive honest, practical advice about your financial goals. It can be emotionally difficult to think about planning for your family after your death. David Toback understands this, and can help guide you the process with professionalism and empathy. Do not wait to consider your options; contact him today at (813) 231-6036.