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It should be clear from this discussion that the LLC will generally be the strategy of choice for most business arrangements. For personal planning and asset protection the Family Savings LLC can be designed to accomplish many of your objectives.

In the usual case, Husband and Wife form the Family Savings LLC. Each are members owning a 50% interest. Financial assets such as brokerage accounts, mutual funds, savings accounts and insurance policies are transferred to the LLC. As discussed later, the family home should not be placed in the LLC. Also, if investment real estate is owned, these properties should be placed in separate LLC’s. A Dangerous Asset such as real estate, which creates significant potential liability should not be placed in the same LLC with your financial assets.

In the event of a future lawsuit against the Husband or Wife the assets of the Family Savings LLC may not be seized by the creditor if the membership interests are properly protected within a Family Savings Trust.

The advantage of the Family Savings LLC over the FLP is that Husband and Wife, as members of the LLC, are not responsible for any debts or obligations of the LLC. This is particularly important if family assets consist of Dangerous Assets such as real estate or other businesses.

The Family Savings LLC is a flexible and convenient strategy for protecting family wealth from the threat of lawsuits and claims. It provides excellent protection for valuable assets such as stocks, bonds, mutual funds, insurance and annuity investments and other savings vehicles. Separate LLC’s should be used to hold rental real-estate to shield you and your other assets from any liabilities associated with the property.