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A key ingredient to a legitimate Family Limited Partnership (FLP)
is that it must have a business purpose. Thus, the FLP should include
assets that require some type of management.
There are some assets that should not go into the FLP. For instance,
neither your home nor your vacation home should be put in the FLP.
If these personal assets were transferred, you would lose your personal
tax benefits since these properties would be transmuted to business
use assets.
Generally, safe (non-liability producing assets) are transferred
to the FLP. In our simplified asset protection plan, with exceptions,
your home and/or vacation home are transferred to a qualified personal
residence trust, your business is transferred to an LLC (Limited
Liability Corporation) or S Corporation, depending on the type of
business, rental or commercial real estate is transferred to an
LLC and the remainder of the assets go to the FLP. All interests
in these entities are held by your living trust.
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