If you have assets of $1,000,000 (or even less in certain circumstances) to contribute, and still retain other assets sufficient to support you for the remainder of your life, you may consider forming and operating a family limited partnership (FLP) among members of your family.
Yes, a FLP is only for wealthy persons, who have significant assets and can afford to pay thousands of attorney’s fees to set it up, defray expert’s valuation costs, as well as bankroll operating expenses to properly maintain it.
It can be as simple as husband and wife-donors creating a FLP with $1,000,000 or less worth of assets, whether real estate such as rental property (but not primary residence), cash, securities, business interests, etc.
Family Limited Partnership (FLP) For Estate Planning and Asset Protection – Beneficial Or Risky? | Asset Protection Trusts