A Family Limited Partnership is a Limited Partnership formed by family members to hold, manage, and transfer family assets across generations. Typically, parents or senior family members serve as general partners and retain control over the assets, while limited partnership interests are transferred to children or other family members over time. It is one of the most effective legal structures for estate planning, asset protection, and generational wealth transfer.
FLP Formation in Georgia
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Included in Every Formation
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Your service fee covers the formal documents, certificates, and resolutions banks and government agencies actually ask for, not just a state filing receipt.
- State Filing
- Corporate or Company Seal
- Records Book
- Articles of Incorporation
- Company & Corporate Minutes
- Bylaws or LLC Regulations
- Stock or Membership Certificates
- Banking Resolution
- Preliminary Name Search
- EIN Filing Support
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FAQ
Common Questions About Forming a Family Limited Partnership
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Families with significant assets: real estate portfolios, business interests, investment accounts, or other concentrated wealth, who want to transfer that wealth to the next generation in a controlled, tax efficient way. It is also used by business owners who want to begin transitioning ownership to family members while maintaining operational control during their lifetime.
When limited partnership interests are gifted to family members, those interests are often valued at a discount relative to the underlying assets because limited partners have no control and limited marketability. This valuation discount allows more wealth to be transferred within annual gift tax exclusions and reduces the taxable estate. The IRS has rules around this, and the structure must be properly implemented to withstand scrutiny.
Full operational control. General partners make all management decisions, control distributions, and direct how assets within the partnership are invested or used. Transferring limited partnership interests to family members does not dilute that control. The FLP allows wealth to move while authority stays in place.
Yes, with important limitations. Assets held inside the FLP are generally protected from the personal creditors of individual limited partners. A creditor who obtains a judgment against a limited partner typically cannot seize partnership assets directly; they may only be entitled to a charging order, which gives them a right to distributions but no control over the partnership. The FLP must be properly formed and operated for this protection to hold.
Real estate, investment portfolios, business interests, and cash are the most commonly transferred assets. Certain assets, such as retirement accounts and personal residences, generally should not be transferred into an FLP for tax and practical reasons. Your attorney and CPA will identify exactly which assets belong inside the structure and which do not.
We draft the partnership agreement, file the certificate of limited partnership with the state, establish the general and limited partner ownership structure, prepare the initial capital contributions, and coordinate with your estate planning attorney and CPA to ensure the FLP integrates correctly with your broader plan.
The partnership filing itself is typically completed within 5 to 7 business days. The partnership agreement and the asset transfer strategy require additional time and coordination with your advisors. Your attorney will walk you through the full timeline at the start of the engagement.