It is absolutely amazing how few people who can benefit from FLPs actually have them.
— FLPs are not a primary estate planning tool (those are your wills and marital or A&B trusts), but FLPs can nicely supplement an estate plan and save your heirs sometimes millions of dollars in estate taxes if done correctly.
— FLPs are also a vital tool when trying to protect wealth from creditors. Assets owned in your own name are subject to creditors. When assets are owned by a properly set-up FLP, they are not.
To read about the asset protection features of FLPs, please click here.
When it comes to “advanced” estate planning, FLPs are almost always a tool that is utilized. Why? Because FLPs can lessen the value of your assets for both gift and estate tax valuation purposes.
If you have an estate of $1,000,000 or more, you are probably a candidate to use an FLP for asset protection purposes.
If you have an estate of $10,000,000 or more (and this includes proceeds from life insurance contracts not owned by an ILIT), you are a candidate to use an FLP for both asset protection and estate planning purposes.
If you would like to download a five-page summary more fully explaining the use of FLPs for estate planning purposes, please click here.
If you would like to sit down with someone from our firm to discuss your estate plan and whether an FLP should be part of your tools of choice to accomplish your estate planning goals, please e-mail firstname.lastname@example.org or call 888-937-1937 to set up an appointment.