Family Limited Partnerships
The Family Limited Partnership or FLP, is the most commonly used entity with the Offshore Trust because it allows the trust to be the 99% owner (or 98%, depending on how many General Partners there are). You as the General Partner will have all the control and decision-making power over the assets in the trust, but you have very little (only 1%) ownership in the FLP, allowing for the best in personal protection.
Importing Law Without Exporting Your Assets
A typical structure that we employ goes back to the idea of importing law without exporting your assets. You have the advantage of your assets being under the laws of an offshore jurisdiction, without physically moving your assets offshore.
The General Partner
The structure removes your legal ownership of your assets while allowing you to maintain control of your assets. For example, the offshore trust would be the legal owner of your assets by being the Limited Partner of a FLP (99% ownership), while you would maintain control over those assets by being the General Partner of the FLP (1% ownership). The jurisdiction for the FLP might be Nevada or California, and it would own your assets.
By making the offshore trust the Limited Partner of the FLP, the majority of ownership would be in an entity that is offshore, under those laws, but your assets would remain in the United States in the FLP that is domiciled in the United States under your control, hence, importing law without exporting your assets.
Simply put, this structure removes you as the legal owner, and if you are not the legal owner of an asset, the United States court does not have the legal support to take that asset away and give ownership to your creditor.
Please contact us for more information on setting up a Family Limited Partnership (FLP) of your own today at (858) 755-6672.