Litigation: Latest Legal Blogs and News
Benefits of an FLP (Family Limited Partnership)
The benefits of creating a Family Limited Partnership (FLP) include (i) management and control; (ii) asset protection; and (iii) reduced estate taxes. A FLP is a legal entity and involves two types of partners: a general and a limited. A general partner makes decisions, such as negotiating and executing an oil/gas lease. Alternatively, a limited partner (LP) does not participate in the FLP’s day-to-day activities, but receives a pro rata share of the FLP’s annual royalty income. Certain heirs may be better suited to manage the oil/gas activities, as the general partner. However, landowners typically want all their heirs to enjoy the royalty income, i.e., as limited partners.
A limited partnership interest is unattractive to creditors including divorcing in-laws (aka “outlaws”) because it is illiquid. The fair market value of a LP interest is generally subject to discounts for lack of marketability and minority interest. These combined discounts can reduce any estate and gift taxes. Centralized management, protection from outlaws and reduced taxes make the FLP an attractive vehicle for many landowners.
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The litigation attorneys at Houston Harbaugh, P.C., are accomplished business trial lawyers, providing comprehensive support in litigation across a broad spectrum of matters throughout Pennsylvania, West Virginia, Ohio and other jurisdictions upon a special admission basis. Our clients are regional and national small, medium and large companies and individuals who seek well planned and aggressive, but cost effective litigation. We counsel, we budget, we have a deep bench, we act quickly when needed and we have experienced trial lawyers who know the courts and bench. We serve regularly as local counsel for some of the largest law firms in the country when they have matters in this region.
Henry M. Sneath - Practice Chair
Co-Chair of Houston Harbaugh’s Litigation Practice, and Chair of its Intellectual Property Practice, Henry Sneath is a trial attorney, mediator, arbitrator and Federal Court Approved Mediation Neutral and Special Master with 98 trial verdicts and extensive federal and state court trial experience in cases involving commercial disputes, breach of contract litigation, Artificial Intelligence (AI), intellectual property matters, patent, trademark and copyright infringement, trade secret misappropriation, DTSA claims, cyber security and data breach prevention, mitigation and litigation, employment and restrictive covenant litigation, probate trusts and estates litigation, construction claims, eminent domain, professional negligence lawsuits, pharmaceutical, products liability and catastrophic injury litigation, insurance coverage, and insurance bad faith claims. DTSALaw® Business Litigation. Pittsburgh Strong.®
Samuel H. Simon - Practice Chair
As co-chair of Houston Harbaugh’s Litigation Group, Sam focuses his practice on commercial/business litigation. Sam regularly represents clients in the construction, manufacturing, oil and gas, and wholesale/retail/ distribution industries, as well as individuals in matters such as:
- Construction litigation
- Environmental litigation
- Breach of contract disputes
- Oil and gas litigation
- Negligence
- Restrictive covenants (non-compete agreements)
- Civil rights
- Collections/creditors’ rights
- Lease disputes
