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JMF CPA LLC
7800 Glenmore Drive
PO Box 1297
Powell, OH 43065
Phone: 614-408-3730
Fax: 614-408-3731
Cell: 740-972-0858
Email: jo@jmfcpallc.com
Website: www.jmfcpallc.com
A Family Limited Partnership (FLP) is a classic technique to shift income and wealth to future generations. With an FLP, family members pool money to run a business project. Each family member can buy shares for a potential profit.
Gift-Tax Advantages. Using the annual gift-tax exclusion, you might gift FLP interests tax-free to your children and grandchildren. In 2024, this exclusion lets you give up to $18,000 (or $36,000 per married couple) to as many individuals as you choose. This amount is reviewed for inflation increases annually.
Estate-Tax Advantages. Assets in an FLP effectively leave the partners' estates. So, the partnership's future returns are generally excluded from estate taxes, benefitting your children, grandchildren, or limited partners. You can set stipulations in your partnership agreement to protect your gifts from being squandered or mismanaged. One strategy is a rule stating that gifted shares can't be transferred or sold until the beneficiaries reach a certain age. Shares can be transferred to minor beneficiaries through a Uniform Transfers to Minors Act (UTMA) account.
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