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Family Limited Partnerships
Attorneys Available
Patrick G. Goetzinger
David E. Lust
Thomas E. Simmons
Real estate owners, both agricultural and nonagricultural, are attracted to Family Limited Partnerships (FLP) and Limited Liability Companies (LLC) due to the tax and business flexibility afforded.

Real estate investments involve considerable potential liability for owners under mortgages, leases, and contracts. Potential liability by virtue of personal injuries on the property and environmental issues is also present. It is this relatively high degree of potential liability which makes FLPs and LLCs so attractive. LLCs offer several tax advantages over the typical small corporation when it comes to real estate as well.

For example, one FLP, a land company, can own land, while an LLC, an operating company, can own livestock and equipment. The land company will then lease the land to the operating company at a fair rate. This arrangement provides tremendous flexibility in structuring a ranching succession plan and an estate plan that can be tailored to the family's unique dynamics.

There are numerous non-tax advantages to FLPs for estate planning purposes:
  • Retention of control over assets
  • Preservation of assets from claims of creditors, spouses or ex-spouses
  • Allocation of more control than under a trust arrangement
  • Restrictions on transfer rights to non-family members
  • Reduction of estate administration expenses by pooling assets
  • Increased flexibility and decreased formality compared to a corporation
  • As a tool to educate children about responsibility and investment decisions
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Gunderson, Palmer
Nelson & Ashmore , LLP
440 Mt. Rushmore Road
Rapid City, SD 57701

P: 605.342.1078
F: 605.342-9503
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Phone ( 605) 342-1078 . Fax (605) 342-9503 . Gunderson, Palmer, Nelson, & Ashmore, LLP
440 Mt. Rushmore Road . Rapid City, SD 57701
Attorneys licensed to practice in South Dakota, North Dakota, Nebraska, Wyoming, Minnesota, Montana, Colorado,
as well as Rosebud Sioux, Oglala Sioux, Lower Brule Sioux & Cheyenne River Sioux Tribal Courts.