Family Partnership

How will placing my real property in an FLP affect the risk of liability for other assets?

Placing your real property into a family limited partnership should reduce the risk that liability originating in the assets in one family limited partnership would reach to other assets. In general, a creditor of a family limited partnership will be limited to the assets of that limited partnership to satisfy any liability of the partnership. In order to reach other assets, the creditor would have to prove personal liability of your or another general partner or some liability that existed prior to the creation of the family limited partnership in order to reach your personal assets or those of another general partner.