Family Limited Partnerships (FLPs) and Family Limited Liability Companies (FLLCs) are popular vehicles used to reduce the value of assets for gift and estate tax purposes. Gifts and estate taxes are paid on the fair market value of the assets transferred. Fractional or minority interests in FLPs and FLLCs may be discounted in value from the pro-rated portion of the underlying property's fair market value. In addition to the mitigation of transfer taxes, many business and lifetime planning objectives can be accomplished through the use of FLPs and FLLCs.
