NJ Lawyers | Middlesex County Estate Planning Law | South Bound Brook
South Bound Brook | 08880Family 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 South Bound Brook and throughout Middlesex County, NJ. Family Limited Partnerships also have some attraction as asset protection vehicles, primarily because the limited partnership interests may be subject to 'charging order protection' in some states. Limited partnership require the payment of annual fees, and the failure to pay these fees can mean that the entity will eventually be stricken by whatever governmental entity formed it in the first place. If the entity is stricken, it ceases to exist as far as the state and IRS is concerned. Although they do not have nearly the level of formalities as do corporations, limited partnerships are required to have Operating Agreements which must be followed, and the failure to have an Operating Agreement or to follow it can mean that the FLP could be disregarded by a court and treated as it never existed. 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. A common error in FLP structuring is to place all of the client’s significant assets into a single FLP, thus creating a large, single target for creditors to relentlessly attack. As with most other asset protection methods, an FLP will be more effective if it is just one of several diverse methods used to protect assets. The family limited partnership attorneys at Maverick & Peters, LLC are ready to answer your questions and discuss your options. Residents of South Bound Brook NJ can greatly benefit from their sound advice. Contact them today. 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. Family Limited Partnerships can and should play a role in the family’s estate and asset protection planning within their limitations. The FLP must be treated as a business entity, and should not be used as a family trust. All the investment holdings of the FLP should be for business or investment purposes, and all payments made by the FLP should facilitate those purposes. A major key to the success of an FLP is having a very good operating agreement that is custom-tailored to the family business. It is also very important that the FLP be formed in a jurisdiction that limits the creditor’s remedy to a charging order, and does not easily allow liquidation of the partnership interests to satisfy creditors. The seasoned family limited partnership attorneys at Maverick & Peters, LLC are ready to step in to provide families with strong advice and aggressive representation to defend your rights in South Bound Brook and throughout Middlesex County NJ. 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.
South Bound Brook | 08880
Flp Family Limited Partnership Attorneys in South Bound Brook, NJ
08880 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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South Bound Brook Law Firm - All Practice AreasMaverick & Peters, LLC specializes in the following Practice Areas: Accident Law, Bankruptcy Law, Business Law, Civil Law, Criminal Law, Divorce & Family Law, Employment Law, Estate Planning Law, General Practice Law, Immigration Law, Injury Law, Real Estate Law, and more.Attorneys | Estate Planning Law | South Bound Brook | 08880
Related topics: family partnerships, limited family partnership, family limited partnerships, family trust definition, family limited partnership, partnership, limited partnership, limited liability company, partnership agreement, limited partnership
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