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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2026

Wealth Preservation with an FLP

Family-owned livestock business - three farmers of different ages in the barn

A family limited partnership (FLP) is a business or holding company owned by two or more family members. It is designed to preserve a family's wealth and pass it from one generation to the next while reducing or eliminating gift and estate taxes. Assets held in the FLP also receive some protection from creditors and lawsuits.


Partnerships
An FLP consists of two types of partners: general partners and limited partners. General partners typically own the largest share of the business and control asset management and decisionmaking. They may take a management fee from profits. Limited partners contribute capital and have limited or no role in day-today business operations.


How to Create an FLP
Creating an FLP involves several steps:
  • Choosing the family members (partners) who will manage and own FLP assets;

  • Drafting a partnership agreement specifying each partner's responsibilities and ownership percentages;

  • Contributing assets, including investments, real estate, or business interests. The FLP then becomes the owner of the assets;

  • Valuing the assets for tax purposes and establishing each partner's initial interest by employing an independent appraiser;

  • Filing paperwork with the state where the FLP was established;

  • Maintaining compliance by adhering to the terms of the partnership agreement and following all legal requirements.


FLP Disadvantages
FLPs are costly to set up and maintain. An FLP's limited liquidity can create problems during financial emergencies. There is also the risk of members incurring debt that impacts other FLP members.


Tax laws governing FLPs are complex. Families should consult a qualified tax professional, estate planning attorney, and financial professional before proceeding.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.