Partnership Interests in Property

Question 1

Can a partnership hold title to property in the partnership name?

Answer 1

Yes

Question 2

Is property purchased in the partnership name considered partnership property?

Answer 2

Yes

Question 3

What will determine whether property not in the partnership name will be considered PP?

Answer 3

Intent of the parties

Question 4

4 factors to determine intent as to partnership property?

Answer 4

Brought in or acquired for partnership business

Paid for with partnership money

Acquired in the name of one P and carried on the PShips books

Property improved by the PS OR property on which the PS covers expenses

Question 5

A partner’s interest in specific PS property is as a tenant in _____.

Answer 5

PS

Question 6

When and only when can a P possess PS property for personal use?

Answer 6

With consent of other Ps

Question 7

T or F? A P’s interest in specific PS property may not be attached except on a judgment against the partnership.

Answer 7

T

Question 8

T or F? A P’s interest in specific PS property may be attached on a judgment against that P?

Answer 8

F

Question 9

T or F? Ps may never assign their interest in specific partnership property.

Answer 9

F. Can do so when in connection with assignment of rights of all Ps to the property.

Question 10

What happens to the rights of one P to specific PS property when he or she died?

Answer 10

Vests in the surviving partners, not the heirs.

Question 11

Can P pledge the PS’s property as collateral for a personal loan?

Answer 11

No, unless consent.

Question 12

What is a P’s partnership interest?

Answer 12

An interest in his/her share of the profits.

Question 13

Is a PS interest considered personal property?

Answer 13

Yes

Question 14

Can a P transfer his PS interest?

Answer 14

Yes

Question 15

A valid assignment of a PS interest entitles the assignee to receive only what?

Answer 15

Profits the assigning P would be entitled to under the PS agreement.

Question 16

Is the assignee of a PS interest entitled to participate in management or control of the P?

Answer 16

No

Question 17

Is the assignee of a PS interest entitled to require any info, an accounting, or inspection of the books?

Answer 17

No

Question 18

Does an assignment of PS interest dissolve the PS?

Answer 18

No

Question 19

Does the P who transferred his interest in a PS remain a partner?

Answer 19

Yes

Question 20

A judgment credit of a P cannot receive a direct assignment of a P’s PS interest. Instead, what must the creditor do?

Answer 20

See a court order (charging order).

Question 21

If a creditor of a P receives a charging order from a court in order to receive an assignment of a P’s interest, the court may appoint a ______ to collect the P’s share of ____ for purposes of satisfying the debt.

Answer 21

Receiver

Profits.