Family Limited Partnerships and Family LLCs have been a workhorse of estate and gift planning for two decades. The combination of (a) lack-of-marketability discounts and (b) lack-of-control discounts can reduce the gift-tax value of a 30% interest in a family entity to 60–70% of its underlying asset value. With the post-OBBBA $15M permanent exemption (effective January 1, 2026), the conversation has shifted: do we still need FLPs for the average wealth client? And what new opportunities does the higher exemption create?
For our family-office and ultra-high-net-worth clients, FLPs remain a critical tool, but the use cases have narrowed.
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