Articles Posted in Family Limited Partnership

From Inside the Firm: Tom’s “Do’s and Don’ts” for Succession Planning

Published on: December 2, 2016 | By McCulloch & Miller, PLLC

TOM’S 8 TIPS FOR SUCCESSION PLANNING^{(1) ©}

Realize that your Exit Strategy is not business as usual. Get knowledgeable guidance e.g. from financial/legal advisors (team approach). Start now.

Be realistic about objectives: Is it first and goal to go or is it a goal line defense?

Drawbacks of Family Limited Partnerships for Houston Families

Published on: July 25, 2014 | By McCulloch & Miller, PLLC

Family limited partnerships seem like an almost foolproof idea: A client can shield just about any amount of money from creditors while maintaining full control of the assets, and getting tax advantages to boot. But they’re not for everyone, and there can be serious pitfalls to an FLP that is carelessly invoked or improperly constructed.

Family Limited Partnerships, or FLPs, can help protect your assets from personal creditors and allow you to maintain control of the assets during your life. FLPs create a separate entity in which you can place an almost unlimited amount of assets. You can then give your family members limited partnership interests in the entity.

A recent article in Life Health Pro, titled “6 Pitfalls That Clients Eyeing an FLP Need to Consider,” points out the potential drawbacks of an FLP: