Family Limited Partnerships
Family Limited Liability Partnership
For many families, nowadays the Family Limited Liability Company has become an important part to protect their assets. Family Limited Liability Company is used specially for reducing the estate and the income taxes revered on the individual members and also to protect the wealth and estate of the family. The Family Limited Liability Company is gaining popularity nowadays because it allows control on the family assets by protecting it from unfair lawsuits and claims.
It is beneficial to have a Family Limited Liability Company as it holds your personal assets as well as protects them from liabilities. You can get rid of the personal liabilities by placing your individual assets in partnership's name; and at the same time enjoy full control over your asset. Thus, even if they face lawsuits, the creditors won't be able gain control over the company.
The Family Limited Liability Company has some advantages associated with it. There are several tax as well as non-tax benefits to this company. It has a decreased value for the assets for transferring tax purposes through discounts. It is a way of segregating the partnership assets as a different asset and not as a marital asset. It has an advantage to enjoy the management, taxes as well as operational flexibility that is not available in any other types of companies.
There are some families that possess significant assets. For such families, forming a Family Limited Liability Company would be the best solution to decrease their transfer taxes. But there is a restriction in a Family Limited Liability Company that it prohibits transfers of anything to any other person other than the members of the family. Or if the transfer is made to a non family member, then the condition is that the family members have to opt to purchase the interest of the person who wills to make the transfers. This restriction regarding the transferability is contained in the Family Limited Liability Companies Operating Agreement.
The Family Limited Liability Company can be considered as a unique entity providing control as well as the management your assets. It is a technique used to protect against the potential creditors. In a Family Limited Liability Company, there may be one or more than one member who vests with the control of management of the company.
The Family Limited Liability Company is recognized by the accountants, attorneys and other professionals as one of the best tools for preserving the assets, charitable giving as well as estate planning.
Please contact Roger P. Croteau & Associates, Ltd. for further information.