Estate Planning

Using a Business Entity as the General Partner of a Limited Partnership

By David M. Goldman

One needs to be careful that they do not expose their assets in a Florida Limited Partnership to forced distributions because they choose a general partner that can be take over. In the past and in many other states, it is common to protect the GP from liability by making it a corporation or LLC. The problem with this is that if a creditor is able to take over the entity because of a judgment, then the creditor acting as the General Partner can force distributions that they can then attach by means of a charging order.

You should review your limited partnership agreements with a Florida Asset Protection Lawyer to review your LP structure for potential problems in light of recent Florida cases.

Florida does have a LLLP which can remove the liability of the general partner without the use of a more complicated business structure.

Full post as published by Florida Estate Planning Lawyer Blog on December 07, 2010 (boomark / email).