Family Limited Partnership Agreement for the United Kingdom

Family Limited Partnership Agreement Template for England and Wales

A Family Limited Partnership Agreement under England and Wales law is a sophisticated legal instrument designed to facilitate family wealth management and succession planning. It establishes a limited partnership structure where family members can participate as either general or limited partners, enabling efficient asset management while maintaining control within the family. The agreement governs capital contributions, profit sharing, management rights, and transfer restrictions, all while providing tax-efficient structuring options under UK tax legislation.

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What is a Family Limited Partnership Agreement?

The Family Limited Partnership Agreement is a crucial document for families seeking to establish a structured approach to wealth management and succession planning under England and Wales law. It provides a framework for family members to pool assets while maintaining centralized control through a general partner, typically a senior family member or family office. The agreement addresses key aspects including governance, ownership transfer restrictions, and tax efficiency, while complying with the Limited Partnerships Act 1907 and related legislation. This structure is particularly valuable for preserving family wealth across generations while minimizing potential conflicts.

What sections should be included in a Family Limited Partnership Agreement?

1. Parties: Identification of general and limited partners

2. Background: Purpose of partnership and family arrangement context

3. Definitions: Key terms used throughout agreement

4. Partnership Structure: Details of partnership type, duration, and name

5. Capital Contributions: Initial and ongoing capital requirements

6. Profit and Loss Allocation: Distribution of profits and losses among partners

7. Management Rights: Powers of general partner and limitations on limited partners

8. Transfer Restrictions: Limitations on transfer of partnership interests

9. Dissolution: Events triggering dissolution and winding up procedures

What sections are optional to include in a Family Limited Partnership Agreement?

1. Investment Guidelines: Specific investment criteria and limitations for partnerships involving investment activities

2. Family Governance: Special provisions for family decision-making when multiple family branches are involved

3. Succession Planning: Provisions for generational transfer when specific succession arrangements are needed

4. Tax Elections: Specific tax treatment choices when special tax arrangements are required

What schedules should be included in a Family Limited Partnership Agreement?

1. Schedule 1: Initial Capital Contributions: Detailed list of partners' initial contributions

2. Schedule 2: Partnership Assets: Inventory of partnership property

3. Schedule 3: Valuation Methodology: Agreed methods for valuing partnership interests

4. Appendix A: Family Members: List of eligible family members for future partnership interests

5. Appendix B: Management Structure: Detailed governance procedures and committees

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use

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