Family Limited Partnerships

I am planning on setting up a Family Limited Partnership (FLP) for asset protection and insulation. How is this handled for tax purposes? Where should I submit the information (in Virginia) once all the items are prepared for the FLP? Should personal automobiles be included in the FLP? Does title to the house (and autos if included) need to be changed to the name of the FLP?

Family Limited Partnerships are a great estate tax minimization approach, but they must be done right, or you lose the benefit of the "haircut" for assets placed in them. They do involve some additional accounting hassles and are NOT for everyone. Figure it like this, for every $100 dollars you put in you get a reduction in value of 25% to 45%. That would save estate tax on 37% to 50% of the value. But I don't think putting in an ordinary car makes sense -- it suggestts that it is a sham.

Use a lawyer and accountant and don't try to do it yourself!