The problem with these presentations is that they are designed to sell you a “package”. Everyone’s personal situation, tax issues and estate are different, so a “package” may or may not be good for you. These seminars should be to inrroduce you to a topic so that you can ask your atty or CPA intelligent and informed Q’s.
Unfortunately, these guys are also giving you bad advice; an LLC beats an FLP hands-down, except in high-franchise tax states like CA & TX
Posted by Kirsten on February 19, 2002 at 22:46:58:
This morning I attended an asset protection seminar where the attorney/speaker promoted the following four-pronged strategy:
Living Trust
Family Limited Partnership (FLP)
Charitable Remainder Trust (CRT)
C-Corporation
All to be used together.
Under this plan, you would hold all assets in the FLP until you are ready to sell, at which point you would transfer assets into the CRT.
The Living Trust is merely for estate-planning purposes.
If I understood the plan correctly, corporations and/or LLCs alone do not provide adequate lawsuit protection and the FLP is necessary to use in conjunction with a business entity.
I was under the impression that an LLC alone would do the trick for lawsuit protection. Or is this just another way to achieve the same purpose? Thanks in advance.