NJ Lawyers | Middlesex County Estate Planning Law | South Plainfield
South Plainfield | 07080Family limited partnerships (FLPs) are established estate planning vehicles that are a legitimate wealth-preservation and asset-protection strategy. Contact family limited partnership attorney, Vince Maverick, and the estate planning lawyers at Maverick & Peters, LLC if you are concerned about family limited partnerships. They have advised many families in South Plainfield and throughout Middlesex County NJ. Unfortunately, FLPs are also marketed by numerous promoters who shamelessly sell one-size-fits-all cookie-cutter FLP structures and even sometimes also sell kits allowing clients to engage in do-it-yourself FLP planning. 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. 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 Plainfield NJ can greatly benefit from their sound advice. Contact them today. Some people will go to great trouble to fund their FLPs, but never get around to actually gifting the LP interests to the children. This results in wasted opportunities to take advantage of the annual unified exclusion, and ultimately in higher estate taxes paid by the parents’ estate. It also unnecessarily exposes the LP interests to the parents’ creditors during the interim. Family Limited Partnerships can and should play a role in the family’s estate and asset protection planning within their limitations. The family limited partnership is just one of many available techniques, and it should not be overused or made into a single large target. Thus, the percentage of the client's total assets that go into a FLP structure should ideally be 25% or less, and not more than 40% except in unusual circumstances (or a very small estate). Avoid promoters who will try to stick nearly everything into the FLP. 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 South Plainfield 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.
South Plainfield | 07080
Flp Family Limited Partnership Attorneys in South Plainfield, NJ
07080 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 Plainfield 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 Plainfield | 07080
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