Family Partnership

How will the FLP affect my relationship with lenders, insurers, and others?

As the managing general partner, you will have sole control over the property. Usually, this will meet the requirements of any lender or government agency, including a rent control board or the Small Business Administration, which may have requirements that certain control or ownership be invested in a minority or otherwise qualified person. Before transferring property to a family limited partnership, approval should be sought from any lender and insurance should be modified to name the family limited partnership as the loss payee.