FLP

[DollaDollaBillS$$$]

anyone have an FLP? (family limited partnership). was talking with a cfp and he mentioned that for high networth/high savings people that a flp would be something to look into esp with the sunset in a few years of the death taxes. you could pay an entity for annual gift exclusion and it grows in the kids names and/or I could put my practice office building in family living partnership, I’d own 5% as general partner, my kids as 95% limited partner, puts income in their tax rate (flp is reversible and gets assets out of estate). plus rather than a trust, its cheaper since you dont need to pay a trustee. just wondering if this is something I should pursue.

[VentAlarm]

I assumed this post was about fat little pig.

[CordMcNally]

Judging by the OP’s join date, they likely don’t even know FLP really stands for FatLittlePig.

[GasFIRE]

I too thought this was about FatLittlePig (I miss his snarky commentary). Regarding the business entity, an FLP or FLLC is used both for asset protection and estate planning. The kids don't automatically get 95% as limited partners. You place your practice building in it and gift portions or shares of the limited, non-general portion, to your kids up to your annual exclusion (more if you're willing to be subject to the gift tax). Over time they can accumulate a larger and larger percentage to get it out of your estate. Besides the asset protection, the estate advantage is limited partnerships are discounted on death because of their illiquidity so any portion you still own will be valued at a fractional percentage of its worth. At this point an appraisal would be necessary. The combination of gifts to the children and discounted value of the original owner's remaining portion is what makes this useful as an estate planning technique. Although there is no trustee to pay, you do have to keep track of the gifts and file yearly tax returns. Also, while it didn't come to fruition, one of the provisions of the BBB was to eliminate the estate discount on these entities.

[HikingDO]

I literally clicked on this thread hoping Fat little pig was here. Oh well…

[Tangler]

Roger that. FLP (the real FLP) come back please! we miss / need you! None of us is snarky or funny enough.

Here piggy piggy piggy.......here piggy.............

[Tangler]

anyone have an FLP? (family limited partnership). was talking with a cfp and he mentioned that for high networth/high savings people that a flp would be something to look into esp with the sunset in a few years of the death taxes. you could pay an entity for annual gift exclusion and it grows in the kids names and/or I could put my practice office building in family living partnership, I’d own 5% as general partner, my kids as 95% limited partner, puts income in their tax rate (flp is reversible and gets assets out of estate). plus rather than a trust, its cheaper since you dont need to pay a trustee. just wondering if this is something I should pursue.

I have a limited partnership. I was working doing a lot of pediatric cardiac anesthesia (75% + of my days) and two of my colleagues were in lawsuits in a 5 year period so I was looking for asset protection and set one up with an estate planing attorney.

Now I am doing no pediatric cardiac anesthesia and I "think" the LP is overkill and ........I am not sure it was a fail safe solution anyway, but I still have it.

I liked the attorney who helped me set it up and he helped with a good will and other estate planing advice etc. so not a huge deal but I am no lawyer.

You probably need specific legal / accounting advice from a smarter doc than me.

Sad that your post was not about our famous FLP, but good luck!

[StarTrekDoc]

FLP the person still lurks here. He did post earlier a few months ago iirc.

FLP popularity won't surge again unless the estate tax reverts back to 1-2 million again at sunset. Until then, won't spend too much time in the specifics and certainly wouldn't spend good funds on setup of it right now. Do a good trust for now imho.

[Hatton]

I miss FLP and Crixus

[afan]

An FLO might be good for you. If you want to take advantage of the high gift tax exclusion, you will want to give much more than the annual exclusion amount. You will still have some costs for accounting and tax for the FLP. Depending on your circumstances you might not HAVE to hire a corporate trustee if you went the trust route.

[Lithium]

I miss EMD.

oh wait, I’m a day early for that joke.

[Tim]

I miss EMD.

oh wait, I’m a day early for that joke.

Might start a poll: Bring back EMD for one day, tomorrow only. I can't wait to see how much he has exceeded the expectations.

[HikingDO]

I miss EMD.

oh wait, I’m a day early for that joke.

I literally laughed out loud at this post!