A "properly structured and operated" family partnership is perfectly acceptable. People get in trouble when they abuse, rather than use, the setup. Nevertheless, I would not necessarily recommend an FLP for this type of asset. Some of that will depend on additional information.
Much of the answer to the "best structure" will depend on how you want the ownership to wind up and the extent to which you wish to limit, or not, what the heirs can do and when they can do it. That is, do you want the heirs of each current owner to have a 1/3 interest? or do you want each member of the current second generation to have an equal interest? or........? Do you want the second generation to be able to sell the property? or do you want to assure that it stays in the family until the third or fourth generation has the ability to make that decision?
I do not see any real benefit to a joint tenancy - and I see many potential problems. I also do not perceive any true value in using life insurance as a part of this transaction.
If you can give me some idea of the answers to the questions above, I can give you a better idea of a structure that will help you accomplish yoru goals.
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