The Law Offices of Kennedy & Jackson Houston, Texas 713-783-7444 |Email
A family limited partnership is a form of limited partnership (LP) in which family members are the partners. The main function of most family limited partnerships is to serve as the owners of non-homestead real property, large nest-eggs (cash and accounts) and other family assets, as part of anasset protectionorestate planningmeasure.
A family limited partnership may reduce or eliminateestate taxeson the assets it holds. The family limited partnership also provides an ownership structure that will ensure continuous family ownership from one generation to the next. The family limited partnership also shelters the assets it owns from creditors, from lawsuit judgments, and from transfer taxation.
SAFE ASSETS VERSUS UNSAFE ASSETS
Certain categories of assets are good candidates for ownership by an FLP, whereas certain other types of assets should not be owned by a family limited partnership. When constructing an FLP, it is of utmost importance to “not put all of one’s eggs in one basket.” Specifically, this means that one should not mix certain types of assets in an FLP. For instance, if real estate is in an FLP, the real estate, along with any other assets in the FLP, could be subject to lawsuits or other liability. It is therefore not advisable to include cash or other assets in an FLP with assets that would also be subject to liability.
Some of the assets that a family should consider for a family limited partnership include:
Non-homestead real estate
Oil and gas properties
Closely held stock
Assets that should not belong in an FLP include IRAs, 401(k)s and other qualified accounts.
FAMILY LIMITED PARTNERSHIPS: ADVICE AND REPRESENTATION
AtThe Law Offices of Kennedy & Jackson, our attorneys have decades of experience providing comprehensive and clear advice to both individual and business clients regarding all manner of estate planning and asset protection issues. Our estate andprobate attorneys— both of whom are board-certified in estate planning and probate law by the Texas Board of Legal Specialization — can advise you regarding the advantages and disadvantages of setting up a family limited partnership. We also have the skills necessary to perform the actual work offorming the partnership.
CONTACT THE LAW OFFICES OF KENNEDY & JACKSON
Our law office is located in the Galleria area of Houston, with free on-site parking available next to our office building. We provide a complimentary — and confidential — initial consultation to all new potential clients.
To schedule an appointment with one of our lawyers, call 713-783-7444 orsend us an email.
The Law Offices of Kennedy & Jackson 5851 San Felipe Street Suite 925 Houston, TX77057 Phone: 713-783-7444 Toll Free: 800-483-0576 Houston Law Office Map