Asset Protection In Phoenix
Asset Protection Plans
As an asset protection attorney in Phoenix, we are often are asked about asset protection . When putting an asset protection plan in place, we consider your family situation, occupation, assets, as well as your goals and risk of being sued to determine what plans to put in place for you. Here are some of the asset protection tools we use.
Limited Liability Company (LLC)
LLCs have become the most flexible and preferable entity for most operating businesses. They combine tax planning flexibility with administrative simplicity, legitimate asset protection, and a built-in plan for succession of interest after the business owner retires or dies.
A Family LLC can be used as a powerful tool for estate planning, too. Families can benefit from the protection and flexibility that LLCs provide, by creating a proven and reliable structure to manage and distribute family property to children or future generations.
Using a Family LLC can provide enhanced protection from creditors and, in some cases, substantial estate and gift tax savings. Any type of asset can be held in the Family LLC – rental property, stocks or other investments. The Family LLC provides protection with carefully drafted operating agreements defining and restricting ownership and rights to transfer the interests.
Using separate LLCs for separate properties and assets is also an asset protection mechanism. A person injured at the rental property owned by one LLC can only reach the assets in that LLC and not assets held in other entities.
Family Limited Liability Partnership (FLLP)
Like the Family LLC, the FLLP can also provide asset protection. It is also a tool for avoiding estate taxes. The FLLP can be used to transfer ownership to heirs as limited partners (who have no control and no liability) while the management (and liability) is held in the name of the General Partners, often the parents of the limited partners.
Domestic Asset Protection Trust
Several states have enacted legislation to permit a person to create an asset protection trust of which they can be a beneficiary. Arizona does not have an asset protection law in place. Arizona residents can use other state laws to create an asset protection trust to provide protection for their assets.
Contact Phoenix Asset Protection Attorney, Libby Banks For a Free Consultation Today & Learn More About Family LLC’s.