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Rogelio Gonzalez, CRPC®, CSRIC™
Financial Planner
Prudential Advisors
Pacific Northwest Financial Group
1700 SE Mile Hill Drive, Suite 264
Port Orchard, WA 98366
Phone: 360-919-4271
Email: rogelio.gonzalez@prudential.com
Website: www.prudential.com/advisor/rogelio-gonzalez
September/October 2026
Wealth Preservation with an FLP
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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Rogelio Gonzalez is a Financial Planner with and offers securities and investment advisory services offered through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
"Prudential Advisors" is a brand name for the propriety retail sales channgel of The Prudential Insurance Company of America ("PICA") and its insurance company and other affiliates (collectively "Prudential"). Prudential Advisors financial professionals are licensed insurance agents of Prudential.
Pursuant to a strategic relationship among Prudential, LPLE, and LPL Financial, Prudential Advisors financial professionals provide securities brokerage services and/or investment advice on securities solely as registered persons of LPLE, an affiliate of LPL Financial. These financial professionals are permitted to brand under "Prudential Advisors".
LPLE and LPL Financial are not affiliated with Prudential or Pacific Northwest Financial Group.
Prudential, Prudential Advisors, and the Pacific Northwest Financial Group are not registered as a broker-dealer or investment advisor.
Pacific Northwest Financial Group 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.