The Family Limited Partnership (FLP) is the final layer of protection to properly shielded and sue proof your assets. It has general partners (YOU) who control it 100% and Limited partners like corporations, your kids and family, an LLC, or a living trust.
Into the FLP put assets from your business , stocks, bonds, savings, retirement accounts and personal property; like cars, boats and airplanes, jewelry too. The stock from your C corp and all the land trusts and LLC's that hold your properties.
The FLP is revocable which means that it's flexible and that you can change it whenever you want. It's easy to add and remove any type of assets or limited partners.
The trust is secure because of its charging order and tax collection process. If some how, a judgment got attached to you or one of your companies or properties, the charging order restricts the amount ($0) that can be collected from your assets and your income. It also creates a huge tax bill against anyone or company who is awarded judgments against you even if they can not collect the judgment.
It sounds complicated but it can be done online or by contacting a trust attorney to create the documents. Pricing will differ depending on the number of assets you have and the amount of activity the trust partakes in.
When you use these asset protection strategies, there are never any probate procedures or inheritance taxes because on death the complete trust passes through to your heirs, with no wait and very little paperwork.
We highly suggest adding a family limited partnership trust as the last and final layer of protection to cover your assets (CYA) and build a secure financial future for you and your family.