Understanding Family Limited Partnerships: A Visual Demonstration
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Family Limited Partnerships ("FLPs") can
Family Limited Partnerships ("FLPs") can be a great tool to transfer value in a business, while still retaining control. By making gifts of limited partnership interest, a business owner can retain voting control but reduce the size of their taxable estate significantly. Because FLP interests are non-voting and are not marketable, one can significantly reduce the value of these gifts for tax purposes.
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