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

The Perils of Joint Property

August 3, 2017

People often set up bank accounts or real estate so that they own it jointly with a spouse or other family member. The appeal of joint tenancy is that when one owner dies, the other will automatically inherit the property without it having to go through probate. Joint property is all perceived to be easy to setup since it can be done at the bank when opening an account or title company when buying real estate. Continue reading

Cautionary Tale: Charging Order Upon Death of Debtor, Losing All the Limited Liability Company Asset Protection Benefits

July 20, 2017

The Delaware Chancery Court has now ruled on the continuing asset protection aspect of a charging order against assets in a 49% owned LLC. In that court case, a charging order had been obtained by a creditor who wanted to seize the assets inside of the LLC. Continue reading

Asset Protection Strategies Put to the Test: Exemption from Creditors on Real Estate Owned as Tenants by the Entirety—Are You Protected?

March 29, 2017

As another example for our Asset Protection Strategies Put to the Test series, here is an example of a plan that does not work. A taxpayer named Gary in Arkansas created a trust that he believed would avoid any need to pay any taxes on the income from the assets he placed into the trust.   He eventually discovered that the trust did not provide the tax shield the he desired. He found himself owing the IRS over $160,000. Continue reading