Partnerships and LLCs: Unique Issues for Family Limited Partnerships and Family LLCs

Summary

This practice note discusses the reasons for creating a family limited partnership or family limited liability company and the unique tax issues for these entities. Included is a discussion of the purpose of the Family Limited Partnership (FML) or Family Limited Liability Company (FLLC). The practice note goes on to review the family partnership rules, the role of children as partners, and estate planning issues as are result of recent legislation. The note concludes with some estate tax planning and compliance guidelines.