The Asset Management Limited Partnership™ is one of the most important Asset Protection Tools in use today. It is commonly referred to as a Family Limited Partnership (FLP) and when drafted specifically for Asset Protection we have renamed it an Asset Management Limited Partnership.
The Asset Management Limited Partnership™ is an Arizona Limited Partnership that forms the nucleus of a wealth preservation plan as a “holding company” for client assets. The AMLP centralizes the management of liquid assets – cash, savings, investments and securities – while placing a legal barrier around them.
The AMLP can also own other assets indirectly by owning Limited Liability Companies (LLCs), corporations or other partnerships. The AMLP creates legal defenses that severely limit a creditor’s ability to touch partnership assets through “charging-order” protection laws.
These laws prevent a judgment-creditor from touching assets inside the partnership, and limit creditor remedies to only a claim on distributions once they exit the partnership. The General Partner has full control over how, if, or when distributions are made, leaving creditors with little power or leverage.
Effectively drafted and funded, an AMLP can act as a significant hurdle to a creditor seeking to attack your wealth.
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