I met with a client recently with family assets that would be perfect for a family LLC or FLP. The client owned three properties with their siblings. There was a valuable home and two commercial properties. Currently each sibling owned 1/3 and thus they are a de facto “general partnership.” This is probably not the ideal set up for many reasons but mainly liability protection and control issues if one should die or become incapacitated.
General partners or revocable “family trusts” provide no liability or asset protection for the creators of the entity. Thus all the assets are subject to creditors claims and lawsuits!
With a family LLC the family retains control at the sibling level (not kids or spouses) and they have liability protection. These are the crucial benefits of