Our Trust is better than a family limited partnership (“FLP”) or LLC for the following reasons:

Criteria	FLP or LLC	Our Trust
Confidentiality	An ownership interest in an FLP or LLC must be disclosed on the financial statements and tax return of each family member who owns an interest.  This subjects the interest to scrutiny and attack in the event any family member is subject to a lawsuit, divorce, bankruptcy, or review by a government agency, including a review for eligibility for student loans or grants or other assistance.	Our trust requires no disclosure by any family member on financial statements or tax returns.  Our trust is not discoverable through discovery of tax returns, or through a bankruptcy questionnaire.
Ownership	If you own something, then you can lose it in a lawsuit, divorce, bankruptcy, or a proceeding with a government agency.  Each family member who has ownership in an FLP or LLC, has an asset that could be jeopardized.	Neither you nor any family member has any vested ownership interest in the trust.  Therefore, you have no asset that can be pursued or taken into account if you are sued, divorced, bankrupt, or subject to an examination by a government agency.
Flexibility	After you have given ownership away to family members, their ability or willingness to return the ownership is limited by gift tax laws, fraudulent transfer laws, and changing attitudes, wants and needs.  If your child becomes estranged from you, or subject to a divorce or bankruptcy, there may be no way for you to take their ownership away.	Our trust includes a power (called a “special power of appointment” or “re-write power”) which allows the terms, conditions,  and potential beneficiaries or distributees to be changed at any time.  If a family member is estranged from you or under financial attack, the special power of appointment can be used to remove the family member from the trust, and then reinstate them at a later date.
Case Law	Most states allow a creditor to foreclose and become the owner of an interest in an FLP or LLC.  Some states limit the remedy of a creditor to a charging order.  Some states allow a court to give a creditor a broad charging order that gives the creditor a right to an accounting or other directions and requirements against an FLP or LLC.  All states allow a minority interest holder to enforce minority rights and fiduciary duties to ensure that the assets are managed for the benefit of all stake holders.  Most charging orders result in a settlement payment to buy the creditor out at a reduced value.  Most people do not enjoy having to buy a creditor out of their FLP or LLC.	Because no one has a vested interest in the trust, neither do their creditors.  For a listing of cases supporting the asset protection provided by our trust, see Law and Precedent Supporting the Trust.
Tax and Family Complexities	You are required to file a partnership tax return for an FLP or LLC each year.  You are also required to give each family member who owns an interest in an FLP or LLC a k-1 which indicates the portion of income attributed to their interest.  This means that they cannot file their taxes until the partnership return is complete, and they may want to be reimbursed for their portion of the income each year.  It also means that family members and in-laws are entitled to information about the assets, activities and income of the partnership.  This can create significant tax complexities and family complexities.	Our trust results in NO extra tax returns.  Family members don’t even need to know about the existence of the trust, except to the extent you choose to tell them.