An FLP is a specific type of limited partnership that involves two types of partners:General partners. Typically, general partners of an FLP are more senior family membersâparents or grandparentsâwho have accumulated a certain level of wealth. They retain full control over assets they have transferred into the FLP, but the general nature of their partnership share also means that they have unlimited liability.
Limited partners. In an FLP, limited partners are usually made up of younger family members, such as children and grandchildren. Unlike general partners, the limited partners have no say in the partnership's operation, but they do have, to a certain extent, the protection of limited liability.