A family limited partnership (FLP) is a legal entity used to consolidate and manage family assets under centralized control while enabling transfers of limited partner interests to heirs at discounted values. General partners retain control; limited partners hold economic interests with restricted rights. FLPs facilitate succession, creditor protection, and valuation planning, often alongside trusts and insurance for liquidity.

Attorneys form FLPs to centralize investments while enabling discounted gifting. Advisors coordinate limited partner transfers and align life insurance ownership for liquidity. Annual meetings, minutes, and arms-length operations maintain integrity. Valuations and gift-tax filings document discounts and protect against challenges.