Which of the following is true about a family limited partnership?
A) The family limited partnership has the same advantages and disadvantages as a proprietorship.
B) In a family limited partnership, the majority of the partners are related to each other as spouses, parents, grandparents, siblings, cousins, nieces, or nephews.
C) The family limited partnership has fewer benefits than other limited liability partnerships.
D) Only spouses, parents and siblings can form a family limited partnership.

Question

Quizplus · Accepted Answer

A family limited partnership is a type of partnership where the majority of the partners are related to each other as spouses, parents, grandparents, siblings, cousins, nieces, or nephews. This type of partnership provides a way to transfer wealth within the family while also receiving tax benefits and limiting liability. Option A is incorrect as a family limited partnership is not the same as a proprietorship. Option C is incorrect as a family limited partnership provides similar benefits to other limited liability partnerships. Option D is incorrect as extended family members can also be partners in a family limited partnership.

Which of the Following Is True About a Family Limited