A family limited liability company is an LLC that is used to hold title to family assets (for example, real estate), a family business and/or investments. All family members could be members (owner) of the limited liability company or the parents could be the initial members and, over time, gift limited liability company membership interests to their children (or other beneficiaries). Family limited liability companies often are used to minimize estate taxes since membership interests typically can be transferred between generations (for example from parents to children) at lower tax rates than would apply if there were no limited liability company. For estate and gift tax purposes, the valuation of assets held in a family limited liability company may be discounted for valuation purposes and, therefore, less estate or gift tax may be incurred.