The Family Limited Partnership > Who Should Own the FLP
Who Should Own the FLP
In every asset protection plan a crucial issue must be addressed. Who should own the interests in the FLP or LLC, if one is established as a part of your plan? Since LLC law is similar in these respects, this discussion will apply to LLC’s as well. As we will see, an FLP by itself, without a strategy to protect ownership interests in the FLP will not be useful in most situations.
Assume we have created a Family Limited Partnership. Husband and Wife fund it with property worth $1 million. H and W, or an entity which they control, is the General Partner, holding a 2% interest. Who should own the 98% limited partnership interests? Let’s consider the merits of each possible strategy.
Related link:
Recent Developments with Family Limited Partnerships and Limited Liability Companies
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