Protecting Your Assets with a Family Limited Partnership
Another weapon in the arsenal for asset protection is the family limited partnership. In a family limited partnership, creditors are unable to force the liquidation of partnership assets in order to satisfy their judgments. At best, under Nevada law, creditors can only obtain a “charging order.” A charging order allows a creditor to receive distributions from the family limited partnership that would have otherwise been distributed to a limited partner. If the limited partner is also a general partner, he or she can withhold distributions from the partnership and allow the assets to accumulate therein free of the creditor’s charging order. As a result, the creditor is effectively prevented from ever collecting on its judgment against the partnership. So even though it is possible for a creditor to collect on its judgment by proceeding against a limited partner’s interest, as a practical matter, limited partnership interests are not palatable to creditors seeking to collect on their judgments.
If you are in need of an asset protection lawyer in Las Vegas, contact our office today! 702-463-8700. Our office has been advising residents of Las Vegas, Reno, and neighboring cities on matters involving estate planning, probate and guardianship.