Tax Law Insights

Family limited partnerships have long been a valuable tool of the estate planner. Although historically recognized as providing estate tax planning benefits through the discounted value of assets, these limited partnerships can also implement succession planning goals for the closely-held or family-run business, including the transition of management/leadership for the business.

Limited partnerships provide three key benefits to the business owner:

1. a limited partnership is not subject to income tax - it is a "flow-through" entity for income tax purposes;
2. in organizing the ...