Planner Beware: A Peculiar Exception to Traditional Texas Community Property Rules
8 Est. Plan. & Community Prop. L.J. 423 (2016).
15 Pages Posted: 22 Nov 2015 Last revised: 23 Aug 2016
Date Written: November 20, 2015
A number of puzzling inconsistencies exist in the application of traditional Texas community rules to partnership interests. Estate, business, and asset protection planners alike should be aware of the exceptions that exist in the treatment of partnership interests. Whether a client is considering investing separate property in a partnership, making a distribution from a partnership, or giving a partnership interest to a child with the expectation that it will remain the child’s separate property, advisors should warn the client of the risks involved.
This article examines some curious deviations from traditional Texas community property rules and discusses why the rules should apply consistently to partnership interests held as separate property.
Keywords: community property, Texas, partnership
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