Family Partnership

How does the FLP affect the risk of liability experienced by my children?

As limited partners, your children will experience no liability, other than the investment they may have in the limited partnership. As general partners, they would have some potential liability, just as the operator of any business would. However, the children are unlikely to be a managing general partner and thus, unlikely to have such additional liability until after you have died or resigned as managing general partner. This liability could be further protected against by having a trust or limited liability company, wholly-owned by your children, act as the successor general partner.