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Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5241
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
September/October 2026
Wealth Preservation with an FLP
A family limited partnership (FLP) is a business or holding company owned by two or more family members. It is designed to preserve a family's wealth and pass it from one generation to the next while reducing or eliminating gift and estate taxes. Assets held in the FLP also receive some protection from creditors and lawsuits.
Partnerships
An FLP consists of two types of partners: general partners and limited partners. General partners typically own the largest share of the business and control asset management and decisionmaking. They may take a management fee from profits. Limited partners contribute capital and have limited or no role in day-today business operations.How to Create an FLP
Creating an FLP involves several steps:- Choosing the family members (partners) who will manage and own FLP assets;
- Drafting a partnership agreement specifying each partner's responsibilities and ownership percentages;
- Contributing assets, including investments, real estate, or business interests. The FLP then becomes the owner of the assets;
- Valuing the assets for tax purposes and establishing each partner's initial interest by employing an independent appraiser;
- Filing paperwork with the state where the FLP was established;
- Maintaining compliance by adhering to the terms of the partnership agreement and following all legal requirements.
FLP Disadvantages
FLPs are costly to set up and maintain. An FLP's limited liquidity can create problems during financial emergencies. There is also the risk of members incurring debt that impacts other FLP members.Tax laws governing FLPs are complex. Families should consult a qualified tax professional, estate planning attorney, and financial professional before proceeding.
GE-8987423.1(6/26)(Exp.6/30)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. GE-8877021.1(4/26(Exp.4/30)
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