Financial Resources Management, Inc.,
provides authoritative valuations for all your business appraisal needs including buy/sell, estate planning, litigation, and others as well as economic analysis in commercial litigation.
Business Appraisals and Forensic Economics


    The use of family limited partnerships (FLP) has recently been growing exponentially as a way to transfer assets from one generation to another usually at significant discounts from net asset value, thereby reducing transfer taxes. However, these vehicles have other reasons for FLPs. Some of these are as follows: 1) One generation can control distributable cash flow of the partnership; 2) there may be operating cost advantages to consolidation; 3) simplifies annual giving; 4) some protection of assets from creditors; 5) some protection from failed marriages; 6) agreements are flexible; 7) can help limit family disputes by allowing the use of arbitration; 7) may aid family communications on business and financial matters; and 8) can save legal fees associated with probate. These benefits, in addition to the transfer tax savings, argue strongly for family limited partnerships for estates with sufficient assets.