Lawsuit protection using family limited partnership

According to the laws, the only defense a tax payer has against lawsuits is setting up a family limited partnership. The lawsuit protection using family limited partnership is a simple process that has to be done before a lawsuit strikes.

Get assets into a family limited partnership before a lawsuit strikes

When filing for a family limited partnership, the state will stamp on the application form the date and time when the application is received. If a tax payer is sued before the state stamps the family limited partnership application, the tax payer could lose everything.

What to put in the family limited partnership?

Do I have to put everything in the family limited partnership? The answer is no. You don't have to put everything in the family limited partnership. However, if you don't want to lose any particular assets in a lawsuit, you should put those assets in a family limited partnership.

Examples of what to put into the family limited partnership:

• checking accounts
• savings accounts
• stocks
• bonds
• insurance
• real estate properties
• vehicles