A family limited partnership (FLP) is a type of business entity that is often used for estate planning purposes. An FLP is typically owned and operated by family members, and it allows them to pool their assets and pass them on to future generations in a tax-efficient manner.

In an FLP, the family members contribute assets to the partnership and receive ownership interests in return. The partnership is managed by a general partner, who has control over the management and operation of the partnership, and limited partners, who have a passive ownership interest in the partnership.

One of the main advantages of an FLP is that it allows family members to transfer assets to future generations while retaining some control over those assets. By transferring ownership interests in the partnership, the family members can potentially reduce their estate tax liability, since the value of the assets will be reduced for tax purposes.

In addition, an FLP can provide liability protection for the family members, since they are not personally liable for the debts and obligations of the partnership. The limited liability also helps protect the family assets from potential creditors.

Overall, a family limited partnership can be a useful tool for families who want to manage and transfer their assets in a tax-efficient manner while retaining some control over those assets. However, it is important to work with an experienced attorney or financial professional to ensure that the FLP is structured and managed properly to achieve the desired tax and estate planning benefits.