Family Partnership

Who manages property in the partnership and decides when it can be sold?

Typically, one or both of the of the spouses are made managing partners of the Family Limited Partnership. Even if there were other general partners, for example, children without management powers, the managing partner would be allowed to make decisions as to when to sell the property in the limited partnership. The limited partnership will continue on until the end of the period set forth in the partnership agreement, typically, thirty to forty years. It can also be dissolved with the unanimous vote of all the general and limited partners. Prohibiting dissolution without unanimous consent, and a long-term partnership creates the desirable discounted value for estate tax purposes.