Is creating a Family Limited Partnership the best and safest way to protect your assets while maintaining control?

Correct me if I’m wrong, but I understand that if you create an FTP and/or Trust, it becomes a separate entity, provides tax breaks, and is not listed or connected to your name, thereby preventing creditors from seeing and/or attacking the FTP/Trust. Also, what is the minimum amount one can use to create the FTP and how much would it cost to create?

Asked on October 9, 2014 under Estate Planning, New York


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

The best alternative for your situation is best discussed with an estate planner face to face.  FTP's have had increasing use in estate planning over the last few years but it is important that a family limited partnership be formed for valid business purposes and not merely to reduce estate and gift taxation. Estate planning is not cheap at the get go but it can save you tons in the end.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.