A limited partnership is an effective asset protection vehicle that allows you to retain control of your property while granting the direct ownership to the partnership. Often you or your spouse, or a company owned by you will be the general partners, allowing you complete control and management of the partnership. Children or other trusted designees can also be brought in as limited partners in order to transfer property to them. The partnership is an effective tool because under partnership statutes, a creditor who has obtained a judgment against you has no right to take any property from the partnership. The creditor would only be able to attach any payments made to you on behalf of the partnership.
Advantages of owning a limited partnership include:
- Asset Protection
- You or your spouse, or a corporation (owned by you), may become general partners, retaining complete control of the partnership
- You or your spouse, or your Living Trust may become limited partners, sharing in the profits and losses but having no decision making power
- Children can be named as limited partners
- All property is transferred into the partnership
If you would like to arrange a discussion regarding these matters in more detail, please feel free to contact our office to discuss your objectives.