There are several business entities allowed in the state of Ohio.The purpose of this article is to show how these entities can be used to hold title to the family vacation home or that property that everyone in the family wants to continue to own
for future generations. While mom and dad are alive, everyone can enjoy the vacation home with mom and dad owning title. After they are gone, suddenly four children own the property along with five grandchildren of the deceased son. Bottom line, it is just a matter of time until problems arise and either one buys out all of the rest with lifetime resentment or all are forced to sell so no one gets more than the other. Using a separate vehicle to hold title is not a guarantee of future cooperation but it allows the first generation to set the ground rules and each inherit subject to the terms of ownership. This of course will also work for the farm, the commercial property and the business.
The use of following entities will only work when absolute rules are established and clear decisions are made as to who is to be in control. Further, each family must contribute his or her financial share to maintain the property.
• LIMITED PARTNERSHIP
— A limited partnership is a statutory separate entity created under Ohio law. The partnership has both general and limited partners. The general partners control ALL the business operations of the partnership, while the limited partners have no control of the partnership’s business operations and have very limited or no voting rights. This allows each family unit to have one voting unit and each descendant receiving a limited partnership unit that allows ownership without control.