Limited Partnerships
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