Some practitioners disagree and believe that domestic planning involving only family limited partnerships is satisfactory for asset protection planning purposes. Yes, FLPs are helpful, as are limited liability companies and limited part nership associations. In my experience, and that of other attorneys I know who understand the concept, only a fraction of clients who explore expatriation actually expatriate. Although it is an extremely effective planning tool, most people conclude that the benefits carry too high a price tag. Protection for retirement plans comes from two separate and distinct sources.
Exemptions vary dramatically, state by state.
For example, Texas provides a full and complete exemption for the family home and for the cash value of life insurance and annuity contracts. Contrast this with a state like Colorado, which provides limited exemptions. I am concerned when a client has been advised to invest in an asset solely on the basis of it being exempt under local law. This would be the asset preelection tail wagging the investment dog. There may be other flexible, and perhaps more protective alternatives.