Family limited partnership (continues...)

A tax payer can set anyone to be in the family limited partnership and in any percentage of ownership. For example:

In this family limited partnership, John and Mary are general partners of the family limited partnership and Todd who is their son is the limited partner of the family limited partnership. Todd, being a limited partner, has no say in what goes on in the family limited partnership. John and Mary, being the general partners, have every say in the operations of the family limited partnership.

What is neat about the family limited partnership is that, as long as the family limited partnership is set up correctly, it does not matter who the general partners and limit partners are and what percentage of ownership they hold, they are still protected against lawsuits. For example, Todd's ownership may be 90% and John and Mary 10%. It will not mean Todd is liable for 90% of the assets in the family limited partnership or that Todd has more control over the family limited partnership. No matter what percentage of ownership or who the partners are, the protection is in place. And, when John, Mary, or Todd gets sued, all the assets in the family limited partnership are protected.

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