Friday, July 11, 2014
- Expense: FLPs can incur serious set up costs, including legal and appraisal fees.
- Limitations: Not all assets are appropriate for FLPs, and including real property can result in a high tax bill.
- Drama: FLPs do not resolve any conflicts between children after the parents are gone.
- More limitations: The assets in the FLP are for business, not personal use.
See Tom Nawrocki, 6 Pitfalls That Clients Eyeing an FLP Need to Consider, Life Health Pro, July 9, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.