family limited partnership

A Family Limited Partnership (FLP) is a legal arrangement where family members pool their assets—like property or investments—into a partnership. Typically, parents create the FLP and retain control as general partners, while children or other relatives become limited partners with ownership interest but limited management rights. This setup allows families to transfer assets to the next generation efficiently, often reducing estate taxes and protecting assets from creditors. It also provides a structured way to manage and pass on family wealth while maintaining control within the family.