NJ Lawyers | Middlesex County Estate Planning Law | Bound Brook
Bound Brook | 08805Family Limited Partnership is a limited partnership formed to hold the family business or investments, with the idea that the parents will make gifts of their limited partnership interests to their children. Because the limited partnership interests are illiquid, so the theory goes, they should be subject to substantial discounts for federal gift and estate tax planning purposes. Speak to a seasoned family limited partnership lawyer, such as Vince Maverick, to discuss all your options when dealing with a family limited partnerships. He has assisted many families and homeowners in Bound Brook and throughout Middlesex County, NJ. Because of the potential federal gift and estate tax benefits and potential asset protection benefits, FLPs are widely marketed by a variety of attorneys, CPAs, CFPs, and other planners. Many people will go to great lengths to form their FLP and pay substantial fees to a planner to do so, but then never transfer any significant assets to it. Obviously, to the extent that assets are not contributed to the FLP those assets are not afforded either the tax benefits or asset protection benefits of the arrangement. FLP, these are still limited partnerships, which are fundamentally business entities and are not meant for personal use. The family residence should not, for instance, be placed into a FLP, nor should normal family expenses (utilities, clothing, educational expenses, etc.) be paid from the FLP. The use of the FLP for personal purposes could result in the entity being disregarded for tax and asset protection purposes. If an individual dies, or is sued, the management of the FLP may be thrown into disarray and the potential exists for an heir or creditor to take control of the FLP’s assets. Thus, it is a very bad practice to make an individual the GP of a FLP. Charging order protection only works for assets that are already in the FLP structure. If the initial transfer to the FLP was a fraudulent transfer, however, the court can simply void the transaction to the FLP as if it never existed. Family limited partnership lawyer, Vince Maverick, can help you navigate through this difficult and unfortunate time of your life. If you're going through a family limited partnerships in Bound Brook NJ, give him a call today to see what options are available. If the FLP will be used to avoid estate taxes by way of discounting the limited partnership interests that are gifted, it is critically important that the limited partnership interests be the subject of a valuation by a qualified appraiser. If no appraisal is conducted, the odds of the discounting standing up to IRS scrutiny are very low. If the GP is not structured correctly, control of the FLP can be lost. Thus, it is very important that the GP be structured correctly, which is the real art of asset protection and estate planning. It is better to have several smaller FLPs than to have one oversized one. A good rule of thumb is to create a new FLP for every $2 million to $5 million in assets. This keeps the profile of each FLP lower for both creditors and for any IRS audits. With slightly more work, the FLP can provide substantially more asset protection if the LP interests are conveyed to spendthrift trusts formed for the children and not the children outright. For more information on this, contact the experienced family limited partnership attorneys at Maverick & Peters, LLC today. If you're trying to avoid a family limited partnerships in Bound Brook or surrounding cities within Middlesex County NJ, call our estate planning law firm today to get the legal assistance you deserve. Family Limited Partnerships Lawyers serving South Plainfield, Avenel, Bound Brook, Clark, Colonia, Dunellen, Edison, Fanwood, Fords, Green Brook, Iselin, Metuchen, Middlesex, North Plainfield, Piscataway, Plainfield, Rahway, Scotch Plains, South Bound Brook, Warren, Woodbridge, and throughout Middlesex County.
Bound Brook | 08805
Flp Family Limited Partnership Lawyers in Bound Brook, NJ
08805 Estate Planning Law Firm
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Maverick & Peters, LLC 114 Oak Tree Ave, South Plainfield, NJ 07080 (908) 899-1661 http://www.SouthPlainfieldAttorneys.com/
Family Limited Partnership Lawyers in New Jersey
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