Our fourth and final article on reorganisations addresses a potential mechanism for family assets.
A family partnership can be an effective tool to enable assets to transfer from one generation to the next.
It allows parents to transfer assets they believe will accumulate greater value, while retaining control over the management of these assets. The partnership is generally structured so future growth accrues to the children.
A partnership agreement should be prepared which will set out terms of the partnership. The partnership will also be obligated to register for taxes and file tax returns.
Limited partnerships can be considered, with one entity taking on the role of unlimited general partner.
We would strongly recommend seeking tax advice before embarking on a family partnership.
Please contact Conor Mullany, Elaine Keane or Conor Mullins of MWM for more information.
This article is for general information purposes only. Legal advice must be obtained in each individual circumstance. Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies. Please note that MWM are not tax advisors and do not provide any tax advice.
