Family limited partnerships and other similar entities can be extremely valuable as an estate planning strategy for clients who are classified as having a high net worth. These could also be contested by the IRS for their ability to transfer wealth within a family while minimizing transfer taxes in the process.
However, if these are appropriately executed, putting together a business entity to hold assets that might otherwise be subject to taxation on transfer can provide a viable and valuable strategy for minimizing estate transfer taxes. Consulting with an experienced lawyer who has familiarity with this kind of tax planning strategy is strongly recommended.
A family business can present a unique array of challenging issues that should be reviewed carefully by a knowledgeable lawyer who has years of experience in the field. Small mistakes in the planning process could turn out to be catastrophic or could even close the doors of the business.
A family limited partnership as well as other tools such as a trust can help to protect the legacy and the company you have worked so hard to build.
Within your own life, it’s valuable to have a relationship with an estate planning firm in Pasadena so that you have a place to turn when you have critical questions about your estate.