Denver Family Limited Partnerships Lawyer
Trying to plan your estate and make sure that your family is taken care of when you pass away can be difficult, but it’s so important. One great way to protect your estate is by creating a family limited partnership or a family limited liability company. Family limited partnerships (FLP) and family limited liability companies (FLLC) are estate and business planning strategies that allow you to pass your wealth to future generations while enjoying complete control of your assets while you are alive. It will also realize significant tax savings.
You can count on the attorneys at Brady, McFarland & Lord, LLC to guide you through the process of organizing your family’s tax savings strategies. With more than 21 years of experience in estate planning and business law, our family limited partnership lawyers in Denver will work with you closely so we understand your goals, and we will then be able to help you develop an effective plan that allows you to protect what matters to you. Call our office at (303) 420-2863 or contact us online to set up a free initial interview.
Why You Need an Experienced Family Limited Partnerships Lawyer in Denver
The IRS closely scrutinizes deductions, reported income, and the gifting of FLPs and FLLCs. It is essential to have an experienced Denver family limited partnerships attorney guiding you through this process to ensure you enjoy the full tax benefits a business entity has to offer. It’s equally as important to make sure you aren’t inadvertently doing something that is against the law. Our firm can help answer any of your family limited partnerships and family limited liability company questions.
Why Are FLPs And FLLCs an Effective Estate and Business Planning Tools?
If you have a family business or other asset you would like to share with your children or other descendants, an FLP or FLLC could help you achieve your goals. These vehicles allow you to transfer valuable assets into that entity and share them with family members without giving up control. This is a great way to allow your family’s younger generation to participate in the business now and to gradually transfer ownership of a property over time, to your heirs. These entities are effective estate planning tools because they significantly reduce estate and gift taxes. Additionally, both FLPs and FLLCs offer levels of asset protection to their members in the event of a lawsuit or a divorce.
What Exactly Is a Family Limited Partnership & How Do They Help?
A family limited partnership is defined as a holding company that is owned by two or more family members. The purpose is to retain your family’s business interests, real estate investments, securities, and other assets. There are two main purposes of a family limited partnership, including the following:
1. Creditor Protection
Family limited partnerships provide protection from creditors. Any assets that are owned by an FLP are not owned by each individual partner. Therefore, if a person gets sued, the assets that are owned by the FLP should be safe. Even though you don’t technically own the assets once they’re owned by the FLP, you can still retain control over them. This is a great way to protect yourself and your assets without having to give up control.
2. Reduce Gift & Estate Taxes
You can use the FLP as a way to increase the amount you can gift without having to pay the gift tax. When you create a family-limited partnership, you can then transfer assets, such as stocks, bonds, art, property, and more into the FLP. Once you do this, you can then gift equity of the FLP to your children or grandchildren. It’s important to put assets into the FLP that are revenue-generating, such as rental properties or stocks. Your children or grandchildren then receive dividends, interest, and other profits as a result of their ownership stake in the FLP. The future returns that accrue will not be included in your estate for tax purposes.
What Is a Family Limited Liability Company?
A family limited liability company is formed by family members as a way to protect assets from creditors. Additionally, it is used as a way to divide income among children and grandchildren. The members must be related by blood, adoption, or marriage. In an FLLC, one family member serves as the managing member. An operating agreement will be created, which lays out ownership rights, decision-making rights, and controls the transfer of assets.
Consult With Our Denver Family Limited Partnerships Attorneys Today For a Free Consultation
Creating an FLP or FLLC is not a do-it-yourself project. We want to make sure you get the maximum tax benefits when you create these vehicles. That means making sure everything has been designed properly within the laws provided. Our lawyers will help you develop the correct entity that meets your financial goals and provides you with the maximum tax benefits.
At Brady, McFarland & Lord, LLC, we genuinely care about our clients and the communities we serve. To schedule a free consultation, contact us online or call us toll-free at (303) 420-2863 or locally at (303) 420-2863.