Families may be able to protect their personal assets from lawsuits and creditors by forming limited partnerships, with the parents as general partners and the children as limited partners.

Question

Quizplus · Accepted Answer

Limited partnerships allow for the parents to maintain control as general partners while transferring ownership of assets to their children as limited partners. This arrangement can provide protection from personal liability for any legal or financial issues the limited partners may face.

Families May Be Able to Protect Their Personal Assets from Lawsuits