Family Limited Partnership Asset Protection<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhat is a Family Limited Partnership (FLP)?<\/h2>
Today, I\u2019m going to take on family limited partnerships<\/b>. I\u2019m going to give you an introduction in five minutes or less. You won’t learn anything too important, but you should watch this first. I wanted to let you know that the methodology is -I\u2019m going to give you a brief overview.<\/p>
I\u2019m going to show you in later videos what a typical family limited partnership<\/a> looks like; and I\u2019m going to be putting up with the help of Ryan Fowler<\/a> and some other of the faculty the details of the relatively new law that is lending a little bit of hope that family limited partnerships and LLC’s<\/a> are more useful than I normally think.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\tGET STARTED ON YOUR ASSET PROTECTION PLAN<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\tFacebook\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\tTwitter\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\tLinkedIn\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\tWhatsApp\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\tEmail\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\u00a0<\/p>
Okay, let’s start out. What are FLP’s?<\/p>
Partnerships are creations of State law. They’re basically new entities with a full value of a human being, they’re just not living, created by the statutes of every State. I think people call them family limited partnerships because they let the lawyers charge more money.<\/p>
![\"Family](\"https:\/\/www.assetprotectiontraining.com\/wp-content\/uploads\/2020\/06\/Family-Limited-Partnership.jpg\")
They’re really just partnerships. They’re helpful though, and why do we like them? We like them because in the old days, particularly and still a little bit now, they allowed you to take discounts on limited partnership interests for a lack of control.<\/p>
That\u2019s why the estate planners like them. I like them because they separate ownership from control very well. The ownership can be with a limited partner but control can be with the general; and in the case of a partnership, the separation of ownership from control is statutory.<\/p>
It’s in the actual code. It’s part of also a multi-decades long history that the limited partners have no say so.<\/p>
Now, the reason why I think that\u2019s important, is if you make the limited partner your asset protection trust; you can have a situation where you can prove by the statute that you’re limited partner asset protection trust did not engage in any of the business decisions, and therefore should not be subject to suit for any bad acts.<\/p>
Limited partners should be relatively protected from lawsuits, from people who claim they\u2019ve been harmed by some tort. This is what I used them for. A lot of people used them for what’s called charging order protection. We’ll be discussing that in more detail. There’s an intro short video on it, but basically it’s a language and a statute that limits a creditor\u2019s rights to charging order protection<\/a>.<\/p>All they can get is an order to get whatever is distributed, if and when the general partner decides to distribute it.<\/p>
Because that\u2019s been abused by everybody and their mother, it’s been limited by almost all the States and charging order protection hasn\u2019t been that effective in most cases particularly with single member LLCs done for family protection.<\/p>
I don\u2019t use them except to separate ownership from control. I think that they’re very good for that and they also allow you to set up a trust \u2013 a family \u2013 with an asset protection trust being the limited partner of a family limited partnership.<\/p>
It allows you to keep a majority of your funds safely in the United States without exposing the trust to in rem jurisdiction or really effective service or process in the United States.<\/p>
You do that by putting all of your U.S. situs assets under the family limited partnership which essentially becomes a holding partnership. I\u2019m going through this very quickly.<\/p>
You’re going to get this in great detail in the videos that are part of this section.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t
What is a Family Limited Partnership (FLP)?<\/h2>
Today, I\u2019m going to take on family limited partnerships<\/b>. I\u2019m going to give you an introduction in five minutes or less. You won’t learn anything too important, but you should watch this first. I wanted to let you know that the methodology is -I\u2019m going to give you a brief overview.<\/p>
I\u2019m going to show you in later videos what a typical family limited partnership<\/a> looks like; and I\u2019m going to be putting up with the help of Ryan Fowler<\/a> and some other of the faculty the details of the relatively new law that is lending a little bit of hope that family limited partnerships and LLC’s<\/a> are more useful than I normally think.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t \u00a0<\/p> Okay, let’s start out. What are FLP’s?<\/p> Partnerships are creations of State law. They’re basically new entities with a full value of a human being, they’re just not living, created by the statutes of every State. I think people call them family limited partnerships because they let the lawyers charge more money.<\/p> That\u2019s why the estate planners like them. I like them because they separate ownership from control very well. The ownership can be with a limited partner but control can be with the general; and in the case of a partnership, the separation of ownership from control is statutory.<\/p> It’s in the actual code. It’s part of also a multi-decades long history that the limited partners have no say so.<\/p> Now, the reason why I think that\u2019s important, is if you make the limited partner your asset protection trust; you can have a situation where you can prove by the statute that you’re limited partner asset protection trust did not engage in any of the business decisions, and therefore should not be subject to suit for any bad acts.<\/p> Limited partners should be relatively protected from lawsuits, from people who claim they\u2019ve been harmed by some tort. This is what I used them for. A lot of people used them for what’s called charging order protection. We’ll be discussing that in more detail. There’s an intro short video on it, but basically it’s a language and a statute that limits a creditor\u2019s rights to charging order protection<\/a>.<\/p> All they can get is an order to get whatever is distributed, if and when the general partner decides to distribute it.<\/p> Because that\u2019s been abused by everybody and their mother, it’s been limited by almost all the States and charging order protection hasn\u2019t been that effective in most cases particularly with single member LLCs done for family protection.<\/p> I don\u2019t use them except to separate ownership from control. I think that they’re very good for that and they also allow you to set up a trust \u2013 a family \u2013 with an asset protection trust being the limited partner of a family limited partnership.<\/p> It allows you to keep a majority of your funds safely in the United States without exposing the trust to in rem jurisdiction or really effective service or process in the United States.<\/p> You do that by putting all of your U.S. situs assets under the family limited partnership which essentially becomes a holding partnership. I\u2019m going through this very quickly.<\/p> You’re going to get this in great detail in the videos that are part of this section.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\tThey’re really just partnerships. They’re helpful though, and why do we like them? We like them because in the old days, particularly and still a little bit now, they allowed you to take discounts on limited partnership interests for a lack of control.<\/p>