How to set up Family Limited Partnetship with living trust

The FLP is very complex. They are best suited for certain investments and their primary rationale is to reduce the value of the estate through the transfer of interest in an FLP. Setting up an FLP is not something to be done without experienced legal counsel.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

The contents of this answer is for educational purposes only and does not constitute an attorney-client relationship.

I agree with the previous answer in that FLP's are tricky in the current tax and legal arena. They are expensive and can be a pain to maintain (especially over generations). And they might not give you the creditor protection you are looking for.

If creditor protection for money or liquid assets is your biggest goal, there are only four real protected vehicles under Texas law (retirement accounts until death, annuities, life insurance, and homestead). Most clients of mine typically choose annuities or life insurance as simple and cheap investment options, rather than creating a entity. I do all of these. So if you have any more questions about this let me know!

Good Luck!

Robert J. Mueller