Family Limited Partnership
Learn how family limited partnerships work in estate planning and how they interact with trusts to help families manage and transfer assets.
How is a family limited partnership different from putting assets in a trust?
A family limited partnership (FLP) and a revocable living trust serve different purposes and are often used together rather than as alternatives. A trust primarily controls how assets are managed and distributed after death, helping families avoid probate. An FLP is a business structure that pools family assets — like real estate or investments — under a partnership, allowing senior family members to retain control as general partners while transferring limited partnership interests to heirs over time. One key difference is that gifting limited partnership interests may qualify for valuation discounts, which can affect how assets are valued for transfer purposes. Many families explore both structures as part of a broader estate plan.
