Chapter 16 - § 16.8 • POTENTIAL ADDITIONAL BENEFITS OF USING LLCS|LPS FOR ESTATE PLANNING

• Jurisdiction: Colorado

§ 16.8 • POTENTIAL ADDITIONAL BENEFITS OF USING LLCs/LPs FOR ESTATE PLANNING

As discussed in Chapter 6, "Creditor Rights," and Chapter 7, "Owner Liability for Debts of an Entity, Reverse Veil Piercing, and Liability to Return Unlawful Distributions," LPs and multi-member LLCs raise statutory barriers — the charging order provisions — to claims of a creditor of a member or partner seeking to enforce a claim against the member or partner's interest or against assets in the entity. Many of the observations made above for proper use of an FLP or an FLLC for estate planning will also serve well when considering asset-protection issues. Several years ago, one of the authors...