Attorney
A family limited partnership can provide a structure for owning and managing a business or investment assets together. It may also support a succession plan, but the benefits depend on the legal structure, the partnership agreement and how the arrangement is actually operated.
Understand the entity being formed
“Family limited partnership,” or FLP, describes a limited partnership whose ownership involves family members. It is not automatically the same as a limited liability limited partnership, or LLLP. In Florida, general partners of an ordinary limited partnership generally have personal liability for partnership obligations, subject to the statutory rules. LLLP status provides a different rule for obligations incurred while that status applies.
A limited partner is not personally liable for partnership obligations solely because of being a limited partner, even when participating in management and control. The agreement and applicable law determine management and approval rights. It is therefore inaccurate to say that limited partners are categorically forbidden from participating.
Coordinate management and ownership
Parents or other family members may contribute assets and receive partnership interests, then transfer some interests over time. The agreement can address management, distributions, transfer restrictions, succession and the resolution of disagreements.
Those transfers are real changes in ownership. Retaining management authority is not the same as retaining an unrestricted right to use partnership property for personal purposes. Separate accounts, records and compliance with the agreement are important.
Evaluate taxes and valuation carefully
A gift of a partnership interest may shift future appreciation and use available transfer-tax exclusions. For 2026, the federal basic estate-and-gift-tax exclusion is $15 million per individual, with the actual amount available affected by prior taxable gifts and other applicable rules. The older $5.49 million figure is no longer current.
A valuation discount is not automatic. It depends on the rights transferred, restrictions, underlying assets and applicable tax law, supported by appropriate valuation work. Retained enjoyment, inadequate formalities or other facts can undermine the intended estate-tax result. Gift reporting, income-tax basis and possible generation-skipping transfer tax should also be reviewed.
Recognize the limits of creditor protection
Florida law limits the remedies a judgment creditor may use against a partner’s interest in a limited partnership. That does not make the partnership’s own assets immune from its creditors or provide a universal shield against divorce claims, guarantees, misconduct or improper transfers.
An FLP can be useful when it serves a real management or succession purpose and the family is prepared to maintain it. We can help compare a family limited partnership with other structures and coordinate the legal work with tax and valuation advisers.
Sources: Limited-partner liability; General-partner and LLLP liability; Creditor remedies against partnership interests; Current federal estate-tax guidance.
Updated October 26, 2026.