What is a Family Limited Partnership primarily used for?

A Family Limited Partnership (FLP) is primarily utilized for pooling resources and managing investments among family members. This arrangement enables family members to contribute assets into a single partnership, which can then be collectively managed to pursue investment strategies that might be difficult for individuals to execute alone. The FLP structure allows family members to maintain control over the investments while providing a framework for asset management and wealth preservation across generations.

By structuring the partnership this way, family members can legally limit their personal liability and protect their assets from creditors. Additionally, the FLP can facilitate the transfer of wealth within the family by allowing for the gifting of partnership interests, potentially minimizing estate and gift tax implications.

While the other choices touch upon relevant concepts related to personal finances and charitable activities, they do not capture the primary function of an FLP, which is centered on investment management and resource pooling among family members.