As family‑owned entities mature, evolve, and sometimes fracture, governance failures often surface at the point of exit, requiring attorneys to create a soft landing for the estate planning objectives of the family with attention to governance, fairness, and family dynamics.
Credits: 1 General, 0 Diversity/Inclusion PR, 0 MH/SA PR, 0 Other PR
Family limited partnerships rarely fail overnight. More often, they strain under changing family circumstances, outdated governance structures, evolving tax regimes, and differing expectations among generations. In this program, Kirk Hoopingarner, partner at Quarles & Brady LLP, draws on more than 35 years of advising closely held and family‑owned entities to explore what happens when an FLP no longer aligns with the family it was designed to serve. Within the lifecycle of family enterprises, this session focuses on the governance challenges that surface at the end stage when succession plans are unclear, control shifts create tension, liquidity needs diverge, and formation documents drafted decades earlier no longer fit modern realities. Mr. Hoopingarner explains why many FLPs have effectively run their course, particularly as estate‑tax planning needs have changed, while also highlighting the partnership benefits families risk losing upon dissolution, including asset protection, centralized management, and pooled investment capacity. The program walks attorneys through identifying dissolution triggers buried in legacy agreements and statutory default rules, as well as off‑ramp strategies that may allow families to address conflict without full liquidation. Mr. Hoopingarner emphasizes that successful exit planning must integrate governance considerations with technical ones that account for asset mix, debt structures and guarantees, capital accounts, and historical allocations.
Kirk A. Hoopingarner, Quarles & Brady LLP, Chicago
Expires 4/1/2028
