How does the family partnership discourage creditors?
Unless the family partnership is set up when current debts are causing serious problems, the family partnership may protect family assets from creditors. The reason is if a creditor obtains a judgment against you, the creditors can generally only seize cash or assets distributed out of the partnership. This is called a “charging order.” You can choose as managing partner to not distribute partnership profits, and so the creditor with a charging order has the unpleasant result of having to pay income tax on profits the creditor is not currently receiving.
The creditors cannot seize assets of the family partnership, unless it is dissolved. Of course, the partnership is structured so it is dissolved only with the consent of all the partners.
However, please note that the California courts are the most liberal at allowing a creditor to seize a partnership interest. I personally do not believe one should create a family partnership solely for asset protection purposes. However, such protection, as it is, is an advantage of a family partnership. Therefore, assets in a family partnership, in general, are protected from creditors.
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Bryan Freeberg May 2, 2017.
Lisa Vertz
March 14, 2022.
I worked with Brandon Johnson and he was very thorough and excellent to work with on a living trust and will.
Roman Kisz
December 21, 2021.
Antonio is great. I work in a related industry, but my wife does not. He sat down with us and helped to get our estate in order by walking us through the trust process. My wife was very happy we took the time to protect our family and to get this crucial step in life accomplished. Thanks again!
Don Houle
August 13, 2021.
A great place to place your trust for a trust
Mike Ricci
December 5, 2020.
Kathy Locklear
October 3, 2020.
Kyle T
September 22, 2020.
Kevin is very knowledgeable, professional, and easy to work with. Highly recommend for Tax and Estate planning.
Joan Riley
January 16, 2018.
I have just completed my trust work with Mr. Staker and I could not. be happier. I was referred to him by a prominent San Fernando Vally commercial realtor so I had high hopes when I met with him and I was not disappointed. Now I am insisting that my children go to him to make certain that their trusts are in order. Joan Riley
Bryan Freeberg
May 2, 2017.
