Family Limited Partnerships

The concept of using a Limited Partnership for family asset protection has many positive values. Unfortunately, we often find the family member planning their FLP fail to develop/organize and plan properly. We will begin an explanation of both asset protection and estate planning on these pages so you may understand how to organize and manage so that the maximum benefits are obtained.

Why use an FLP?

Protect Your Estate

The planner of an estate must consider the vulnerability of their planning, consider the possibilities of fees of  lawyers, guardians, administrators. estate appraisers and bonding companies intent upon depriving your rightful heirs of assets you have worked a lifetime to accumulate.

Probate Costs To Much

You may have seen advertisements by Attorney's offering free Estate planning. Probate fees payable to Lawyers alone can be excessive for example in California the Estate Fees are as follows:

$ 100,000  fees are $ 4,000
$ 250,000 fees are $ 8,000
$ 500.000 fees are $13,000
$1,000,000 fees are $21,000

If an Executor or Administrator is involved you can double those amounts! Then add guardians if there are children, appraisers and
bonding companies, etc.

Minimize Taxes

Federal Law now exempts the first $1,000,000 of an inheritance from inheritance tax. However the surviving spouse of a couple with an AB Living Trust can take the share of the deceased spouse at a stepped up basis to current market value and any Long Term gains paid on a subsequent sale will be at the stepped up rate, a huge benefit. See your Tax advisor.

Orderly Transfer of Assets upon Death

Your estate passes immediately, through the Trust upon your death to your beneficiaries and heirs.

Reduce Time to Pass Assets

Probate generally requires from 2-5 years to close and distribute an estate. With a Living Trust everything is already done and in place and the heirs and beneficiaries simply "step into your shoes"

The Trust Gives You:

Control

As the creator of the Trust you name yourself Trustee. You retain full control over the Trust and all of its assets. You may alter, sell or give away any of the Trust assets

Flexibility

Your Trust is a revocable Living Trust, as such you have the flexibility to change the terms or beneficiaries of the Trust at any time. You may abolish the Trust if you wish.

Simplicity

The person you want to be the beneficiary of the Trust, usually your spouse is called the Successor Trustee. Upon your death, the Successor Trustee takes over the estate and may immediately terminate and distribute the Trust without ever going through Probate

Simplicity itself.

Having a Trust, Do I Still Need A Will?

Yes

Although it is suggested that you review your Trust and update it every year or so. It is only human nature to prepare it, then stick it in a safe place and promptly forget about it. Years pass and you acquire other assets, some or all of which are not properly added to your Trust. For these "After acquired Assets", or possibly for anything you overlooked or left out at the time of the formation of your trust, a SIMPLE WILL is essential. Simply stated, your Simple Will can "sweep" any overlooked asset into the Trust, otherwise it may be subject to Probate.

How Do I Get Started?

Here at NFH we have designed a new Web Site and Data Base that will allow you to organize your estate on-line without risk of outside influence. You will be able to prepare your FLP make decisions regarding the General Partner, prepare the FLP agreement,  the living trust and your will. Further you will be able to store this information permanently secure servers that will enable you to access your information 24/7. Our new services are in Beta testing changes and should be on line in November.