A Family Limited Partnership (FLP) is a partnership used to consolidate and manage family assets while enabling discounted transfers to younger generations. General partners retain control over management;limited partners receive economic interests with restricted rights, supporting valuation discounts for lack of control and marketability. FLPs facilitate succession, creditor protection, and centralized governance.They are commonly coordinated with trusts, buy-sell agreements, and life insurance for estate-tax liquidity and equalization among heirs. Proper formalities-meetings, minutes, and arm's-length dealings-are essential to maintain integrity and defend discounts under audit.

Advisors coordinate FLP setup with counsel, execute discounted gifts of limited-partner interests, and align life insurance for liquidity and equalization. Families observe formalities-minutes, distributions, arms-length deals-to defend discounts. Annualreviews revisit valuations, governance, and successor general partners to maintain stability and tax efficiency.