Family
Limited Partnerships
(FLPs) offer creditor
protection. A creditor
can only seize the debtor's
partnership interest
and not the underlying
assets owned by the FLP.
Since the holder of a
limited partnership interest
has no say in the daily
affairs of the partnership,
the seizing creditor
would be unable to compel
distributions from the
partnership. However,
the creditor, as the
limited partner, will
be taxed on the pro-rata
share of the partnership’s
profits.
If
you would like more
information regarding
asset protection, trusts,
family limited partnerships
or the subject of this
article please call
or email our office.
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