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Charging OrderCharging Order

Acharging order only allows a creditor the right to attach distributions rather than allowing a creditor to succeed to all of the ownership rights of a partnership interest. Partnership law with respect to creditor rights and subsequently, limited liability company (LLC) law, developed differently than corporate law. A creditor of a partnership or LLC does not receive any voting rights. With a charging

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Mark Merric, Bill Comerand 1 more

April 1, 2010

22 Min Read
Wealth Management logo in a gray background | Wealth Management

Mark Merric, Bill Comer, & Daniel G. Worthington

Acharging order only allows a creditor the right to attach distributions rather than allowing a creditor to succeed to all of the ownership rights of a partnership interest. Partnership law with respect to creditor rights and subsequently, limited liability company (LLC) law, developed differently than corporate law. A creditor of a partnership or LLC does not receive any voting rights. With a charging order, the creditor is left with a right to distributions; however, the creditor has no method (such as voting rights) to force a distribution.

Different authors use different definitions of what is included in the definition of “sole or exclusive remedy.” To the layperson, the word “sole” or ...

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About the Authors

Mark Merric

Manager

http://www.internationalcounselor.com/

 

Mr. Merric is the manager of the Merric Law Firm, LLC, a manager of the Alliance of International Legal Counselors, LLC, and a manager of China-U.S. Import Export Sourcing Company. He is active in the areas of domestic and offshore asset protection, domestic and international estate planning and international business transactions. Prior to practicing as an attorney, Mark Merric developed a strong business background practicing as a Certified Public Accountant for over twelve years. During this time, he worked for a Final Four Accounting Firm, two local accounting firms, and managed his own accounting firm.

Daniel G. Worthington

 

Dr. Daniel Glen Worthington is an independent estate planner, consultant, and legal educator with over twenty years of experience in helping meet the estate and financial planning needs of affluent families. Dr. Worthington consults affluent individuals and their families through their law firms, national financial firms and non-profit organizations regarding advanced philanthropic, estate and generation skipping transfer tax issues. He is a lecturer and frequent contributor to national estate planning periodicals and journals, including Trusts and Estates. He is featured in Who's Who in America, Who's Who in the World, Who's Who in American Law, and Who's Who in American Education.

Dr. Worthington resides in Orlando, Florida and serves as a Senior Wealth Advisor, with his principal office at the Florida Hospital Foundation. He previously served as Assistant Vice President and Trusts and Estates Counsel at the University of Central Florida Foundation. Dr. Worthington is the former Associate Dean of the University of South Dakota School of Law, where he also served as Executive Vice President for the Law School Foundation.

Dr. Worthington is co-founder of the Family Bank Design Center, and is a founding board member of the nationally based South Dakota Trust Company. He also serves on the national editorial boards of both the Planned Giving Design Center and the Endowment Development Corporation. He presently serves the National Committee on Planned Giving (NCPG) as one of the 11 member National Valuation Task Force. He is also serves adjunct faculty member in the Masters of Tax Program at the University of Central Florida.