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Richard, Attorney
Category: Estate Law
Satisfied Customers: 55605
Experience:  29 years of experience practicing law, including tax and estate planning.
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Am I better protected if I put my portfolio in a company

Customer Question

Am I better protected if I put my portfolio in a company name ( LLC or INC ) instead under my personal name? thank you
Submitted: 2 years ago.
Category: Estate Law
Expert:  Richard replied 2 years ago.
Good morning. My name is ***** ***** I look forward to helping you this morning? Can you provide me a bit more information? What is in your portfolio? Is your investment portfolio simply stocks and bonds? Or, do you own real property or other assets which could result in liability to you? Thanks.
Customer: replied 2 years ago.
investment portfolio that simply has some stocks & bonds…these are my only assets.and not that Im anticipating anyone to sue me in the near future; I am just just to be proactive in protecting myself all around; so I was wondering if there was an advantage in having the investment portfolio in just my personal name or set up a company and have the investments go through that company? thanks!
Expert:  Richard replied 2 years ago.
Thanks for following up. Simply putting them in a limited liability company would not protect you because while the assets themselves would be protected, your ownership in that entity would be at risk which would then give someone the ability to get to the assets. The best thing you can do to protect your ownership in the entity holding your investments is to put the ownership of the entity into a family limited partnership. Carefully drafted, this converts assets that a creditor would find attractive to go after into a limited partnership interest with no control, no rights other than that of an assignment, no transferability, no marketability, and no right to distributions. The transfer is for fair market value…i.e., you are simply exchanging one asset for another of equal value to you. And, you maintain control through a general partnership interest that you control. Yet, when complete it essentially is an asset no one wants and thus the creditor is less likely to pursue the debtor.
Customer: replied 2 years ago.
Who assists me in a family limited partnership? an accountant? Thanks again!
Expert:  Richard replied 2 years ago.
An attorney would do this for you. :) You're very's my pleasure to help!
Customer: replied 2 years ago.
Is this very complicated to set up ? And is it very expensive to set UP? I don't have any properties …it would only be a few investments in my portfolio of stocks and bonds..thanks
Expert:  Richard replied 2 years ago.
It's not that complicated. Attorneys that do these have a fairly standard form for these FLP's. If you would like, I could provide you a template for an FLP that you could probably pretty easily complete with your specific facts. I can do that for you through the Additional Services option offered by JustAnswer. If that would be helpful, let me know and I'll extend that offer and you can then decide whether or not to accept. Fair enough? I just wanted to let you know that I will be away at a meeting for the next couple of hours. Should you respond before I return, I will address it immediately upon my return. Thank you in advance for your patience. I apologize for any inconvenience.