There are many different estate planning strategies and options available to you, and one of the chief concerns for many people working with lawyers now is the ability to transfer generational wealth. In Massachusetts, you should always discuss creating a family limited partnership directly with an estate planning lawyer. 
What is a Family Limited Partnership?
Anyone with substantial assets, a business or very valuable property may be looking into family limited partnerships as an option. A family limited partnership is a potential tax saving strategy that can be set to wind down at a specific date in the future when you pass away or continue to operate past your date of death. It’s a common misconception that only extremely wealthy families can benefit from FLPs.
Who Can Benefit from an FLP?
Upper middle-class families who have valuable collectibles that they do not wish to sell, those who have inherited real estate, or those who own small businesses may choose to use a family limited partnership.
Creating an FLP
There are tax filings, appraisal fees, and annual operating costs in addition to the initial expense of setting up an FLP which can run into the thousands of dollars. Due to concerns that FLPs may be abused, the IRS also scrutinizes these closely, meaning that it is very important to make sure that there is a legitimate business purpose for your FLP. The first step in creating an FLP is to establish an agreement, and this should be done with the help of an estate planning attorney.
Working with an Estate Planning Lawyer
One of the primary distinctions with an FLP is that all of the partners are family members. There are both limited and general partners. For example, you might wish named children as limited partners and adults as full general partners. Schedule a time to meet with a qualified estate planning lawyer to talk through your options and whether or not an FLP makes sense.
