Brooklyn, NY Personal
Injury Lawyers

(718) 395-6126

142 Joralemon Street, Suite 500
Brooklyn, NY 11201

  • Home
  • Credentials Matter
  • Practice Areas
    • Brooklyn Personal Injury Lawyers
    • Car Accident Lawyers in Brooklyn
    • Brooklyn Workers Compensation Lawyers
    • Medical Malpractice Lawyers of Brooklyn Persoonal Injury Law
    • Wrongful Death Lawyers in Brooklyn NY
    • Mesothelioma
  • Blog
  • Free Case Evaluation

November 21, 2019 by admin

What is a Family Asset Protection Partnership?

What is a Family Asset Protection Partnership?

There are several ways that an asset protection lawyer can assist clients with protecting the assets they have worked hard to amass. A great way to do this is by setting up Family Limited Partnerships (FLP) as a way to protect clients’ assets from lawsuits. However, it is important to know that an FLP is only one part of that protection and other asset protection plans must be used in conjunction with it. If a client only sets ups an FLP without other options, there will be no more protection provided than what would be offered by a living or revocable trust.

When an FLP is utilized correctly, it can provide both asset protection and savings on tax obligations, both income and estate taxes. This is why it is critical to contact a seasoned asset protection attorney to help establish all necessary legal structures.

Establishing an FLP

In order to establish an FLP, a parent or parents will take a portion of their assets –and transfer them into the Family Limited Partnership. These assets can come from savings, investments, or other business interests. The parents can either be general partners where they will owe a predetermined percentage of the FLP, or they can form a Limited Liability Corporation (LLC), which will own that percentage.

In the majority of situations, corporations are not used because shares of a corporation can be legally seized by a creditor, which would nullify the asset protection benefits of the FLP. It would also mean the creditor would become a general partner of the Family Limited Partnership, giving the creditor all management rights to the assets.  

Who Owns the FTP?

The parents can also retain ownership of a portion or all of the limited partnership or transfer to other family members. As general partners, it is their responsibility to manage the FTP and all of its assets. Anyone who is a limited partner is not allowed in any management participation other than the right to vote on any matters which are specified in the agreement put forth when the FLP is established.

Once all the assets have been transferred into the Family Limited Partnership, the parents will no longer retain direct ownership of these assets. Now it is the FLP that directly owns the assets, and the parents will maintain controlling interest of the FLP. Since they maintain control of the FLP, they are able to purchase or sell any of the assets contained in the FLP, as long as they adhere to all of the terms set forth in the partnership agreement. The parents, as the general partners, also determine what amount will stay with the FLP and what amount will be distributed to any of the limited partners.

In the majority of FLPs, the parents transfer limited partnerships to their children. By naming them as limited partners, the parents are able to move assets to their children while obtaining that asset protection and tax protection mentioned above. When it comes to lawsuits, any assets that have been placed into the Family Limited Partnership cannot be attached or seized by any creditor judgment.

Filed Under: Uncategorized

  • Home
  • Credentials Matter
  • Practice Areas
    • Brooklyn Personal Injury Lawyers
    • Car Accident Lawyers in Brooklyn
    • Brooklyn Workers Compensation Lawyers
    • Medical Malpractice Lawyers of Brooklyn Persoonal Injury Law
    • Wrongful Death Lawyers in Brooklyn NY
    • Mesothelioma
  • Blog
  • Free Case Evaluation

BROOKLYN, NY PERSONAL INJURY RESOURCES

Brooklyn Personal Injury Law Firm
Brooklyn Personal Injury Attorney
Brooklyn Car Accident Lawyers
Brooklyn Medical Malpractice Attorneys

Other Resources


Washington DC Medical Injury Lawyer
Service Truck Accident Lawyer, DC
DC Slip and Fall Lawyer
Elizabeth, NJ Workers Comp Attorney
Who is the Top Bankruptcy Lawyer in Cypress, TX
Truck Accident Lawyer Las Vegas NV
MSPB Appeals Attorney
Work Injury Lawyer Denver CO
Birth Injury Accident Lawyer Los Angeles CA

Free Consultation

Request a free consultation with one of Brooklyn, NY's premier personal injury law firms.

Request Free Consultation

© COPYRIGHT 2023 BROOKLYN PERSONAL INJURY LAWYERS | POWERED BY Matador Solutions - Digital Marketing Company