Family Law Questions? Ask a Family Lawyer Online.
I will try to best answer your question.
My first question for anyone considering a family limited partnership is whether they have consulted with their CPA regarding tax ramification. This is critical as you can create tax consequence by setting up and transferring assets to the FLP is not properly done and planned. One of the number one reasons to utilize the FLP is for tax advantages. A second reason is asset protection. In regard to negatives, you need to be careful regarding transfer tax avoidance for property going in or out of FLP. Refinancing can also be more difficult for property in FLP. You also want to utilize an attorney and a FLP specifically draft for Texas, not from the internet. Over all there are more advantages than disadvantages to using and FLP as long as it is part of an overall tax strategy and is drafted properly.
I hope that this information is helpful and I wish you the best of luck.