A vital aspect of estate planning entails properly protecting your income and assets. Although there are laws that protect your assets, you might consider some options for protecting your assets from future losses from creditors, and additional taxes that may be levied . The Stempler Law Center offers experienced consultations in the above estate planning matters. Some of the methods recommended for asset protection include setting up a Family Limited Partnership. In this instance a family can work together in safeguarding assets in which the parents typically are general partners and their children are limited partners. Limited partners do not play an active roll in managing the assets, nor are they responsible for the debts incurred. This program may be applicable for families that want to capitalize on reduced estate and gift tax laws. Because of the complexity of equating all the assets under this partnership into actual cash value, families can take advantage of lower tax valuations. And regarding gift taxes, certain exemptions will apply in a Limited Partnership that are not available through traditional gift tax transactions.
A Family Limited Partnership may in some instances shield your assets from creditors. A spouse may transfer assets to their partner, however there are laws against the movement of assets for fraudulent activity. Typically assets owned by a spouse may not be taken in order to satisfy the judgement of another spouse.
Regarding creditors, assets that are positioned in a trust or foundation are usually not subject to claims against beneficiaries.
In order to secure and preserve your assets from future liabilities, it is important to contact an attorney to discuss a strategy. Contact the Stempler Law Firm in West Caldwell for expert advise on this subject.
Stempler Law Center provides qualified legal counsel and representation to residents of West Caldwell, New Jersey, and communities across North Jersey including Newark, Clifton, East Orange, Wayne, Parsippany, Bloomfield, West Orange, Montclair, Livingston, Maplewood, Summit, Montville, Pinebrook, Millburn, Short Hills, South Orange, Springfield, Verona, Caldwell, North Caldwell, Fairfield, Roseland, and Whippany, New Jersey (NJ). We practice primarily in Essex County, Union County, Hudson County, Passaic County, Bergen County, Monmouth County, Middlesex County, and Morris County.