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C. Decedent’s Decision To Form a Family Limited Partnership
William Reichardt met with John R. Hannah (Hannah), a
certified public accountant, and asked about post mortem estate
planning for his mother’s estate. Hannah recommended that the
children and decedent form a family limited partnership.
Decedent, who had just been diagnosed with terminal cancer, and
William Reichardt met with Hannah on June 5, 1993, to discuss
Mrs. Reichardt's estate.
On June 17, 1993, decedent signed his will and a durable
power of attorney and formed a revocable living trust called the
Reichardt Family Trust (the trust) and a family limited
partnership called Reichardt Partners, Ltd. (the partnership).
Decedent appointed himself and his children as cotrustees and
authorized each trustee to act on behalf of the trust. The trust
instrument provided that decedent was entitled to receive the net
income of the trust, which was to be paid at least annually, and
that he was entitled to use the corpus of the trust for his
support, maintenance, health, and general welfare. The trust
instrument provided that the trust property and accumulated
income would be divided into as many equal shares as the number
of his children when decedent died.
The trust was the partnership's only general partner.
On June 21, 1993, the Texas secretary of state approved and
recorded the certificate of the partnership.
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