They say that we live in a litigious society. There are always individuals out there that are poised to file lawsuits against people that they perceive as “deep pocket targets.” Clearly, asset protection is important to safeguard your own interests, and there are legacy planning implications as well. Family Limited Partnerships One legal structure that can be the ideal asset protection tool when certain circumstances exist is the family limited partnership (FLP). The best way to explain the … [Read more...]
Your Planning Can Help Your Loved Ones
Each of us will die eventually. This article looks at how planning can make your passing easier for your loved ones. Specifically, this article will look at the importance of the manner in which assets are left for your loved ones. Your Planning Can Help Your Loved Ones … [Read more...]
Two Business Structures That Provide Asset Protection
You should definitely prioritize asset protection when you are starting a business. It is important to separate your personal property from the business assets, and vice versa. There are two legal structures that are typically utilized for small business owners that want to protect assets, and we will look at them in this post. Limited Liability Companies A limited liability company can provide an asset protection solution in many instances. When you establish an LLC, there is legal separation … [Read more...]
ATRA and Your Estate Planning Efforts
As you may know, when the American Taxpayer Relief Act of 2012 was passed and put into law, it immediately made permanent several estate and gift tax provisions. It also provided a more definitive rule for transfer tax rates and exemption amounts. These were put in place in a way that would allow them to kick in this year. ATRA For more than a decade, there was no small degree of confusion about a number of compliance issues for transfer tax rates and exemptions. The new law remedies most - … [Read more...]
Estate Planning and Asset Protection Planning
All of us have the need to protect our assets; after all, we’ve worked hard for what we have and we want to be sure there’s something left after we’re gone. Asset protection planning is simply the effort of protecting what you’ve worked for from potential creditors. Don’t mistake the intent: it’s not about hiding assets to avoid paying taxes, nor is it fraudulent or illegal. Instead, it’s about covering your financial bases. These days, it’s increasingly difficult to maintain those assets … [Read more...]
Think Twice Before Taking a Pension Advance
Have you been tempted to take a pension advance loan? There are such things after all. Here’s how they work: You get a lump sum payment and pay the lender back over time, usually five or ten years. You get the money you need now, but at a price. No company is going to give you money as a favor and they need to be repaid, not unlike other lenders. There are limits on the amount of interest that can be charged, but additional fees can quickly increase your monthly payments. In addition to … [Read more...]
What Happens to the Assets I Left Out of My Trust?
If you have created and funded a revocable living trust, you need to continually add assets into that trust to keep them protected. If, however, you don’t include all of your assets, there are a few things that could happen to the assets left out. Probate Court Any assets not given to your trust when you die will automatically go through probate court. The probate court judge will have to determine where those assets are distributed, unless you have otherwise specified in your … [Read more...]
You Are at Financial Risk
The estate has been set up. Wills and trusts are established. Unfortunately, you are still at financial risk. The elderly are at high risk for fraud and other financial scams for several reasons. Most importantly, they have some money to lose. They are also around the house when the phony public employees and unscrupulous contractors are plying their trade. Unfortunately, they may be more trusting than they should be and not always have their defenses up. There are many steps to take to … [Read more...]
