September 20, 2017
The use of a limited liability company can provide what is known as charging order protection against creditors of individual members who have assets inside the LLC. Continue reading
Year: 2017
Asset Protection Aspects of a Trust Pierced by IRS
September 13, 2017
The IRS has successfully pierced the asset protection aspects of a trust that was set up in New Jersey. In the past, I have published some accounts of other situations in which the federal government was able to treat assets in a trust as being property of its beneficiary because the trust agreement described a specific purpose for the trust. Continue reading
Filing 2016 Gift Tax Returns—Is there a Need to Disclose Noncompliance with Proposed Treasury Regulations Under Code Section 2704 with respect to Discounted Valuation Gifts?
September 8, 2017
President Trump issued in April Executive Order 13789 to identify which regulations: (i) are unduly complex, (ii) impose undue financial burdens on taxpayers, or (iii) exceed the IRS’s statutory authority. Continue reading
Estate Planning For the Newly Married
September 7, 2017
Now is the perfect time to start working on an estate plan—because, as newlyweds, you may not have a list of your accounts, but you’ve effectively just done a working inventory of your possessions—as you’ve figured out how to consolidate two households into one. You’ve already been working on the new banking and shared responsibility of bills and taxes and so forth. Continue reading
Capital Gains Taxation May Not be as Inevitable As Most Think
August 31, 2017
Most taxpayers are familiar with tax deferral options that the US Tax Code provides such as (i) like-kind exchanges in which capital gains are deferred when appreciated real estate is exchanged for similar real estate, or (ii) selling real estate on an installment sale basis so that capital gains are deferred over the life of the installment note. Continue reading
How to Align Insurance with Your Estate Plan
August 29, 2017
If you’re like most folks, you use a variety of insurance products to manage risk and protect you, your family, and your assets from losses caused by property damage, businesses, property, accidents, disability, retirement, and death. However, instead of considering these insurances as separate items, we suggest you make them part of an integrated, overall risk management plan. Continue reading
Will a Third-Party Trust Created for Your Family Be Safe from the IRS Tax Collector or from Other Federal Actions such as Restitution?
August 24, 2017
There have been a couple of recent cases that have concluded that there is no asset protection strategy to stop a formidable creditor, who has secured a federal judgment, from attaching a beneficiary’s interest in a trust created by, for example, Mom or Dad for their son or daughter as the beneficiary. Continue reading
The Double-Whammy’d Charging Order: Forget About Protecting the Assets in that LLC
August 21, 2017
Once again, the confidence one may have in relying on an LLC created in the United States as being the untouchable storehouse where assets can be safely tucked away, is misplaced. In the new ruling in the case of Peach REO, LLC v. Rice, Peach REO, LLC sought to attach the LLC interests that Malcolm Rice owned in various LLCs (in Tennessee, Mississippi and Delaware). This attachment of the LLCs was through a charging order. Continue reading
4 Estate Planning Steps You Must Take After the Death of a Spouse
August 17, 2017
When a spouse passes away, thinking about “the estate” might be the last thing on your mind. And while it’s necessary to give yourself ample time to process the loss of your partner, it’s also imperative you talk with your estate planning attorney sooner rather than later — or you might be facing some pretty unpleasant consequences. Continue reading
Moving to Florida as the Last Resort Strategy to Avoid Creditor Actions—The Ultimate Asset Protection Maneuver?
August 9, 2017
Buying the ultra-expensive home in Florida has become known to protect unlimited amounts from creditors, even when the residence is purchased after the debtor is aware that a creditor claim exists or is looming. Continue reading