Our Wills, Probate & Estate Planning Team are experts in setting up family partnerships.
What is a Family Partnership?
A family partnership is a legal entity and is typically used as a way for parents to share assets with their children during their lifetime. Under this arrangement, all parties to the agreement are ‘partners’, and as such, all retain a common interest in the shared assets.
Our Family Partnership Expertise
We have been assisting Irish families with partnerships for over 35 years, helping to protect their mutual interests, handling any issues, queries or changes which arise and the dissolution of a partnership once its original purpose is served.
What are the benefits of a Family Partnership?
There are numerous reasons why many families enter into family partnerships in Ireland. The headline benefit is that it affords the ability to transfer assets from parents to children but only to pay tax at today’s rate, while retaining some control over those assets. When it comes time for the children to take full control of the assets within the trust, no further tax should be payable. Parents will typically transfer assets during the life of the partnership which they believe will increase in value over time.
Under such schemes, parents will usually only retain a small proportion of the share of the assets in the partnership, with the children holding the majority.
The overall tax burden under a family partnership should be much lower than outside of such arrangements. However, in order to achieve taxation benefits it is important to take advantage of the full Capital Acquisitions Tax threshold available to each partner, and if gifting cash, purchasing investment property or managing rental property under the partnership, this needs to be done with a full understanding of the latest family partnership tax implications. Our Wills, Probate & Estate Planning Team can advise on all such matters.
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