A payable-on-death account, also called a POD account, is a common way to keep bank and investment accounts out of probate, the court-supervised process that oversees distributing a deceased person’s property. Most people want to avoid their estate going through probate because their heirs will receive the inheritance faster, privately, and at lower cost. Continue reading
Tag: Trust
Why a Spendthrift Trust Can Be a Great Solution for Your Heirs
There are many tools that can be used when putting together your estate plan. One such tool is a trust. 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 Trust that Bars Both Creditors and State Income Taxes at the Same Time
August 2, 2017
The IRS recently issued Private Letter Ruling 201729009 where the IRS again blessed certain tax aspects of a trust (known as an “ING” trust, which stands for an “incomplete non-grantor” trust) that protects against both creditors and state income taxes. Continue reading
Having a Trust that is Both “Dated” and Irrevocable can be Hazardous to your Wealth.
July 26, 2017
Irrevocable trusts that were set up a few years ago (as well as many trusts that are still being set up today) which have provisions that are “etched in stone,” may later, due to changing laws or family circumstances, operate in a way that was completely unexpected. Continue reading
The Achilles Heel to Domestic Asset Protection Laws?
June 21, 2017
Jay Adkisson recently highlighted the Nevada case of Transfirst Group, Inc. v. Magliarditi, 2017 WL 2294288 (D. Nev., May 25, 2017), in which fraudulent transfers (i.e., transfers of assets made to frustrate a creditor) were the subject of an injunction to prevent the debtor from moving assets beyond the creditor’s reach. The creditor took the position that certain entities (LLC, corporation, partnership, trust) were merely alter egos of the debtor, and therefore those entities were also subject to the claims that the creditor held against the debtor. Continue reading
Make Sure This Provision is NOT in Your Trust; Otherwise Asset Protection Disappears
April 19, 2017
Mr. Reynolds encountered debt problems at a very inconvenient time. He had inherited a trust with multiple millions of dollars in it from his parents when they died. The very thought of such new found wealth going to pay multiple creditors can leave a bad taste in one’s mouth. Mr. Reynolds was hopeful that he could file for Chapter 7 bankruptcy relief from his debts while still being able to receive sizable distributions from the trust his parents had created for him. Continue reading
Top-Rate Asset Protection Law for Trusts in Belize
March 22, 2017
Belize law compared to other offshore trust asset protection laws has some interesting aspects. Most offshore laws allow a creditor a certain period (typically 2 or more years) to bring a case in court to show that the assets that were transferred into the trust were fraudulent transfers. Continue reading