![]() ![]() Picture a wealthy 70 year old CEO, whom we’ll call Mr. Here is an example to illustrate how general and limited partnership shares work. They are limited for a reason-limited partners do not exercise control over their shares. No matter how minute a general partner’s interest is, he or she retains control despite the fact that a limited partner may hold a higher percentage of limited shares. Unlike assets which are divided into equal shares, an FLP has two types of shareholders: 1) general partners, and, 2) limited partners. Nelson Rockefeller famously said, “ The secret to success is to own nothing, but control everything.” This is the soul of the Family Limited Partnership. Reduce income taxes paid, by transferring Limited Partnership interests to lower earning junior family members. ![]()
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