Protecting Your Family Assets For Future Generations

When you have significant family business assets, keeping them in the family matters. Without proper protection in place, family assets may be exposed to creditors and hefty tax burdens that can diminish their worth.

At The Johnson Firm, P.C. in Richardson, Texas, our attorneys can assist you in establishing important protections for your assets. If your goal is to protect your assets from creditors, a family limited partnership may make sense for you.

What Is A Family Limited Partnership?

A family limited partnership (FLP) is a tool that allows you to consolidate and protect assets. Through an FLP, you establish a limited partnership that involves two types of partners: general and limited.

The general partner, controlled by you, maintains control of operations and makes investment decisions. You and many other family members will be named limited partners. Limited partners will own interest in the company, but will leave management decisions to the general partner.

The FLP can be maintained to continue to pass down business interests to future generations and maintain asset protection for the assets.

When Should You Consider Establishing An FLP?

An FLP is not for everyone. They must be established for real business purposes. Acceptable reasons to establish an FLP include:

  • Protecting assets from creditors
  • Making post-death real estate sales easier
  • Simplifying the process of family gifting
  • Ensuring a smooth transition of power between generations
  • Providing central management of family assets
  • Simplifying the probate process
  • Keeping assets safe from divorce

Why You Need To Work With An Attorney

Establishing a family limited partnership is an effective way for some families to protect their assets. However, it should be established very carefully.

The IRS closely monitors FLPs. One mistake could have detrimental consequences. Our attorneys have decades of experience helping individuals and families protect their assets. We can help you establish an FLP that supports your goals and falls within acceptable IRS parameters.

Find Out If An FLP Is Right For Your Family

In your first consultation, we can help you determine whether an FLP makes sense for you and your family. Call us at 972-364-7176 or send us an email to arrange an appointment.