Trust or Family Limited Partnership

[bboyd12]

What is the name of your state (only U.S. law)? TEXAS


Hello All,

We've been doing some research and consultations on getting most (if not all) our personal assets moved from our personal names and placed into a living trust or FLP. We have done research and lawyer's meetings but would like some insight from someone not billing me. My family has a large number of assets (both real property and personal property in number and value). We recently went thru probate court and cost us an arm and leg in trying to get it settled. We decided it would be the best interest for the future to place everything in a trust or FLP. The only thing we are concerned about is people coming after our assets. We have several companies in which we operate...that is subject to major exposure...it seems like not a month goes by that people try to seek legal action saying they were "done wrong" but I can assure you they have been taken care of.

From what we have been told a trust could be dissolved when the person who created it dies, we don't really want this, we want whatever route we do to continue from my parents, to my brother, to our kids, their kids, etc. without disruption and the same ideas to carry on throughout the years with the same beliefs we hold now.

Anyways, What are the advantages of both creating a Living Trust and a Family Limited Partnership?

 

[tranquility]

One is better for doing business the other is better for holding assets.

Guess which is which.

(The forum is not really going to have anyone write out a term paper for you listing things you can find on the internet.)

 

[HomeGuru]

One is better for doing business the other is better for holding assets.

Guess which is which.

(The forum is not really going to have anyone write out a term paper for you listing things you can find on the internet.)

**A: I agree. I'm done with term papers.

 

[curb1]

Has anyone suggested a C corporation? I don't understand what a living trust would do for your business situation except to pass the assets to the next generation.

Personally, I think it is a mistake to handcuff future generations with your expectations/desires. If they want to continue the tradition then fine, if they don't they should have the opportunity to move on.

 

[bboyd12]

Business has nothing to do with what we are trying to accomplish, not sure were that was read. We are just trying to figure out if our personal assets should be placed into a Trust or FLP. Also I'm not sure I follow when y'all say "y'all aren't writing term papers"

 

[HomeGuru]

Business has nothing to do with what we are trying to accomplish, not sure were that was read. We are just trying to figure out if our personal assets should be placed into a Trust or FLP. Also I'm not sure I follow when y'all say "y'all aren't writing term papers"

**A: when you hire the attorney, he/she will advise you of the trust route.

 

[bboyd12]

**A: when you hire the attorney, he/she will advise you of the trust route.

We already have one on retainer, and have gone over it with them just trying to get some more real world advice.

 

[HomeGuru]

So what did your attorney recommend? Let us know and we will see if we agree or not.

 

[bboyd12]

Trust for personal assets
FLP for family transactions (buy/sell of land, rental properties, etc.)

 

[tranquility]

Trust for personal assets
FLP for family transactions (buy/sell of land, rental properties, etc.)

Looks like the attorney guessed right.

Holding assets tends to be a trust--especially when it can't be an FLP without a valid business purpose. Doing business is better (generally) with an FLP.

 

[bboyd12]

I hope he didn't "guess" when he told us all this...lol

 

[TrustUser]

a trust does not necessarily need to be dissolved because of the death of the trustor.

 

[bboyd12]

It is just stated inside the trust documents "This trust will continue after so and so's death"? I know not exactly but the same point..

 

[TrustUser]

yes, basically.

some states have perpetuity laws, but not all of them.

and the trust can be stated to be regulated by the state of choice.

to me, it is the single least known and one of the best things about a trust - those assets can be fairly well protected once the trustor dies, and the trust becomes irrevocable.

one thing i like to do is place each real property, business, or any other asset that can be sued in separate trusts. that way, only the asset being sued is in danger from the lawsuit.

 

[tranquility]

some states have perpetuity laws, but not all of them.

All states have perpetuity laws. Some have changed the common law rule to longer--by statute.