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

Answers:

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.


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