Palacios is the brother of Milton, Jerry, Johnny and Edwin. On 30 October 2007, his brother Edwin, then aged 14, was kidnapped by five armed men from the family home in La Ceiba.
Palacios has brothers named Milton, Jerry, Johnny, and Edwin. In 2007, Edwin, who was 14 years old at the time, was kidnapped by five armed individuals from their family residence in La Ceiba.