Asset Protection & Estate Planning Design

Thomas Robert Rogers

Case Conclusion Date:December 28, 2012

Practice Area:Estate Planning

Outcome:Properties transferred to and “held” by a Limited Partnership are now protected from attack by “outside” creditors and no estate tax will be paid now or in the future on the property transferred.

Description:A professional in the medical field, who is also an entrepreneur on the side, established a foreign Limited Partnership as a holding company for the family’s investments that are held in separate Limited Liability Companies for the purpose of protecting the business assets from being attacked by ‘outside’ creditors or predators. The Limited Partnership is owned by Spousal Access Trusts, which are structured as Generation Skipping Trusts, that act as a “family bank” for the members of the family. The family’s everyday personal assets are held in separate Living Trusts for the husband and his spouse for their everyday living needs. The business entities described above that encompass the business assets and the family’s personal assets that will be left over after the death of the surviving spouse, will eventually be owned by separate trusts for each of the children, so there will be no dispute that arises between the children in the future as to whether one of the siblings took more than their fair share from a single trust. If the non-exempt portion of the estate, that is, that portion of the family’s estate which is not sheltered from estate tax by the Generation Skipping Trusts, continues to grow to a taxable level, that portion which is taxable is designed to flow to a Charitable Lead Trust that will flow money on an annual basis to a Family Foundation that will be distributed to various charitable causes to the extent of any estate tax liability, with the excess eventually flowing back the Children’s Trusts about the time that the children will be ready for their retirement. The future generations will benefit from the income made available to them from the Generation Skipping Trusts with principal being kept in tack for future growth.