NJ Lawyers | Middlesex County Estate Planning Law | Warren
Warren | 07059Family 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 Warren 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. 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 Warren NJ, give him a call today to see what options are available. 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. By gifting limited partnership interests directly to a child, the possibility arises of creditors or an ex-spouse of the child getting possession of (or at least a charging order against) the limited partnership interest. By placing the parents gifting the limited partnership interest to a spendthrift trust instead, claims against the limited partnership interest by the child’s creditors and ex-spouses are avoided. 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 Warren 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.
Warren | 07059
Flp Family Limited Partnership Lawyers in Warren, NJ
07059 Estate Planning Law Firm
Contact Maverick & Peters, LLC to discuss your case for FREE!!
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
Get the help you deserve. Speak to a seasoned attorney to discuss all your legal issues. We've helped countless individuals throughout Middlesex County during their unfortunate and difficult times.
Three Ways To Discuss Your Legal Issue - Complete the Quick Contact Form or - Call us at (908) 899-1661 or - Come visit us. We are conveniently located at: 114 Oak Tree Ave, South Plainfield, NJ 07080
Warren 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 | Warren | 07059
Related topics: family partnerships, family limited partnership, limited family partnerships, family wills, family partnerships, partnership, family law attorney, living trust, family trust, limited partnership
Free consultantation offer may be revoked at any time for any reason without prior notice.* The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.