GLOSSARY · TAX & ESTATE

Charging order

A court order that lets a creditor of an LLC member or partner receive any distributions the entity pays that owner, without gaining any vote or control. Where it is the creditor's only remedy, it discourages collection against business interests. Its strength depends on state law, and single-member LLCs often get weaker protection.

Also called: charging order protection, charging lien
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CHAPTER · WEALTH PROTECTION FUNDAMENTALS · FOUNDATIONSLLCs, Family Partnerships and Protection Trusts
RELATED TERMS
Domestic asset protection trustVoidable transfer
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