Business owners often use C corporations as a means of limiting personal liability. Typically, the owners attempt to shield their personal assets from business related liabilities.
Intergenerational squabbles don’t just make for tense holidays. Failures of trust and communication can put family wealth into jeopardy.
As the town of Springfield’s resident oligarch, C. Montgomery Burns earned the ire of the townspeople through any number of misdeeds, including blocking out the sun, having the Rolling Stones killed, and stealing Christmas from 1981 through 1985.
Family limited partnerships (“FLPs”) give senior family members a tax efficient way to shift wealth to future
generations while still exercising control over their assets. As an added benefit, by forming a FLP, senior family members remove assets out of their estate—generally at a reduced transfer tax value.