Family Investment Partnerships: All the Perks

Family investment partnerships (IPs) are frequently used to manage and control multigenerational family wealth. Aggregating family assets in an IP may also result in significant economic and tax benefits. Accomplishing a family’s investment goals, however, requires understanding its investment objectives, the nature of its underlying investments, and the degree of investment flexibility sought by participating family members or entities. Although these entities appear complex, they are now much easier to administer because technology helps to reduce the burden of tracking sophisticated global investment products and complying with U.S. tax reporting requirements.