Tony Bennett, $1 Million, Jack Kenya discussed on Money Matters with Ken Moraif
I encourage you to do so We've had thousands and thousands of people do it over the last. We've only been promoting it for a short time now, and it's remarkable. So go subscribe to it, get it downloaded to your device at your convenience. And or you can go to our website and do it there. It's r p o a dot com Alright, we're going to talk now about uh huh. Estate planning. This is the part of show we talk about how to pass on to your greedy, unwashed undeserving airs the fruits of your labor. Okay, And that is called estate planning, And we're going to talk this week about how a family limited partnership could protect you. From lawsuits from bankruptcy from a state taxes, all kinds of stuff that you don't want and we're going to do that, but first Jack Kenya play it. I know I'd go from rags to return. If you would only say you care, Um my pocket, maybe empty. I'd be a monsieur to there. And of course, that is Tony Bennett with rags to riches and you know the estate taxes and probate and all that kind of stuff. It's actually designed to do the exact opposite. It's designed to take you from riches to rags, and we do not want that to happen to you. So every week at this time we have our state tip of the week and this week we're going to talk about the family limited partnership. And it's actually an F l P for short to flip and we talked about flips because we do give a flip. Just so, you know. So, Jackson the little squirts heavy? Yes, indeed. And you want happy squirts. So let's describe what a family limited partnership is. First of all, Okay, so the first what it is, is it is a business. It is your family's business. Okay, so you're creating a business. What is the purpose of the business? The purpose of the business is to manage your family's financial affairs. Okay, So what you do is you create the family partnership, and then you put your assets if you have real estate or investments or whatever it may be inside of this business. Now the reason why you do that is the same reason why people have corporations and those kind of things is because they want to protect themselves from liability right. When people create a corporation, it's because they want to protect their personal assets from their business. Somebody sues them over something that happened at their business or whatever, and they want to contain it within the business, So it's the same idea. Except now, what you're doing is you're putting a container around your family's assets. That is very difficult to appears from the outside, so if somebody wants to sue you and get at those assets, it makes it more difficult for them, so that's one thing that it can do. The other thing that it does is because businesses are valued differently than assets are So, for example, if you have and my favorite numbers you guys know is $1 million, right? Austin Powers are so if you take a million dollars And you have it in a checking account. There is no discussion about what that million dollars is worth its cash. It's in the bank. But if you take that million dollars, and you put it inside of a business, a family limited partnership And there are rules and all kinds of structure around that then all of a sudden, now you're not valuing the million dollars in cash. You're valuing the business itself and business valuation rules come into play, and those can be advantageous and get you discounts of the value for state tax purposes. Oh, and I've seen cases where that could represent savings of hundreds, if not millions of dollars in taxes. Okay, So the family limited partnership is a very Versatile tool. It's one of the few times that. I think lawyers have really come up with something that I like. Okay, you guys know how I feel about the living trust. So the family partnership PFLP is is something that you may want to consider. Now. The thing about it also is that it is complex. And it is something that you should not do by yourself. You should talk with an attorney as state planning person. Make sure you talk with a professional before you do anything like that. Okay. Now let me offer you up way of doing.