Asset Protection

Securing Payment of Child Support with a Children’s Safe Harbor Trust

Published on: August 18, 2015 | by Rarick & Bowden Gold

By: Phillip B. Rarick, Esq.

Most divorce judgments call for one of the parties to obtain a life insurance policy to secure the payment of child support, alimony or some other financial obligation. Let’s assume the obligation is solely child support: a potential mistake is failure to secure payment of the policy premiums by use of an irrevocable Children’s Safe Harbor Trust structured as a spendthrift trust.

For securing the payment of child support, the settlement agreement should have specific language that may read as follows:

Florida Trust Services For Family Law Attorneys

Published on: August 9, 2015 | by Rarick & Bowden Gold

By Phil Rarick, Esq., Miami Trust Attorney

Family law attorneys are increasingly using trusts to secure and safeguard the payment of financial obligations in their marital settlement agreements. Such trusts can provide the following key benefits:

Security that payments will be made in a timely fashion

Asset Protection Checklists For Florida Physicians

Published on: March 16, 2015 | by Rarick & Bowden Gold

By Phillip B. Rarick, Esq., Weston Asset Protection Attorney

The Checklist Manifesto by Atul Gawande is a current, hot selling book written by a physician and advising how to get things right by implementing commonsense systems.

In today’s modern medicine, coupled with our information age, where virtually every procedure can be scrutinized by an “expert” easily found on Google, it should be standard procedure for every doctor to have a comprehensive asset protection plan – one that is up-to-date to meet the challenges of our fast-changing legal system.

Asset Protection Checklist For Florida Physicians With A Solo Practice or Employed By Hospital or Clinic

Published on: March 9, 2015 | by Rarick & Bowden Gold

By Phillip B. Rarick, Esq.*

Action Item	Done
1. No weak links. Each physician in group has personal creditor protection plan. The goal is to have no exposed assets for plaintiff malpractice attorney to attack forcing plaintiff to settle within insurance policy limits. See points 2-5 below.
2. Each physician has domestic or off-shore asset protection trust to protect non-qualified equities and other liquid investments. If domestic trust, consider top tier state jurisdiction such as Nevada. If off-shore, consider clean jurisdiction with sophisticated, modern laws designed to provide maximum protection against creditor attack, such as Nevis or the Cook Islands. Note: Consider multiple layers, such as Nevis LLC owned by Cook Island Trust.
3. Each physician has Delaware LLC or other entity to protect wages. A Florida wage account is limited to 6 months and therefore often not the best solution.
4. Each physician has homestead fully protected. If homestead in municipality exceeds ½ acres it is not protected by Florida homestead law. Consider deeding exposed property to corporate entity with 99 year lease to preserve homestead tax benefits. If homestead is not in municipality then 160 acres are protected. Consider leaving mortgage on property – even if not necessary – as good asset protection option. The mortgage can be paid down to avoid creditor attack.
5. Confirm investment rental properties and non-homestead real estate are protected by having title in multi-member LLC with operating agreement updated to take advantage of new Florida LLC law. Note: Do not have LLC without asset protection Operating Agreement drafted by an attorney who concentrates in corporate or asset protection law.
6. Office Space: If group practice owns condo office space or other real estate this property should likely be owned by a separate LLC or LP and leased back to the Group. Exposed real estate is low hanging fruit for creditors. Remember if the practice is to be judgment proof there should be no exposed assets.
7. Confirm IRA’s, pensions and similar plans are properly managed. Private pension plans must strictly follow complex regulations. You likely need a CPA or investment advisor experienced in pension plan administration. See Item #21.
8. Have a Plan B in event of death, disability or disagreement with partners. This requires a Shareholder Agreement or you may find you have your partner’s spouse as a partner. Do you have a shareholder agreement? Is it up to date? Is it adequately funded with life insurance? Mark Done only if you can answer yes to all questions.9. Conduct annual independent review of patient charts and billing, coding, and collection processes to insure compliance with Medicare/Medicaid/private insurance carriers
10. Conduct annual review of group corporate records to make sure basic corporate formalities are followed so that corporate veil cannot be pierced using alter ago theory. If professional association check if: (a) annual corporate minutes up to date; (b) separate corporate bank account; (c) stock certificates clearly show each partner’s interest; (d) tax records sync with corporate record.
11. Make sure individual medical malpractice policy and possible corporate malpractice policy in place. Conduct annual review of policy limits with medical malpractice broker who specializes in med-mal insurance.
12. Individual checking account you use for monthly expenses: If married, title as Tenants by Entirety (TBE); if single consider placing title in Delaware LLC.
13. Umbrella policy. This is a good, cost effective insurance product but make sure you check for gaps in policy. All insurance policies have limits and exceptions; make sure the “Umbrella Policy” does not contain gaps.
14. Insurance coverage to avoid business interruption or threats to profitability of practice: (a) Disability insurance; (b) Overhead insurance to cover practice expenses during period of disability; (c) Workers compensation insurance; (d) general liability insurance to cover slip and falls in office or parking lot; (e) adequate auto insurance.
15. Theft proof practice monies and accounts receivable. Have strict system for logging in all checks in master log and ensure properly deposited. No one person should control check logging system. In larger practices, have someone from CPA firm periodically review check logging system without notice.
16. Ensure trust systems in place for children and loved ones. Note: Make sure your estate plan is integrated with your asset protection plan.
17. Protect vacation home: Consider to title in LLC, Limited Partnership, or Tenancy by Entireties.
18. Auto and motor vehicles: If married, title in name of person who drives vehicle the most; not in joint name. Make sure all vehicles are adequately insured.
19. Boats or jet skis: Title in name of LLC with asset protection operating agreement.
20. Schedule target completion date for your asset protection plan. Write the date down on your office and smart phone calendars. Plan when the waters are quiet – prior to any lawsuit. Waiting too long may limit planning options and enable attack via the Florida Uniform Fraudulent Transfer Act, F.S. 726.
21. The most important item: Have team of experienced, caring professional advisors consisting of: (a) CPA; (b) estate and asset protection attorney; (c) qualified financial and pension plan advisor; (d) medical malpractice insurance broker; and (e) general liability insurance advisor.

Note: We welcome your questions. Contact Phil Rarick, Miami asset protection attorney, Rarick & Bowden Gold, P.A., at (305) 556-5209 or prarick@raricklaw.com.

* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection

planning attorney, guru, and friend. Alan is the author of Creditor Protection For Florida Physicians, an excellent and insightful book for physicians, attorneys, and CPA’s; it is available on Amazon.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Asset Protection Checklist For Florida Physicians In A Group Practice

Published on: February 28, 2015 | by Rarick & Bowden Gold

By Phillip B. Rarick, Esq.*

Action Item	Done
1. No weak links. Each physician in group has personal creditor protection plan. The goal is to have no exposed assets for plaintiff malpractice attorney to attack forcing plaintiff to settle within insurance policy limits. See points 2-5 below.
2. Each physician has domestic or off-shore asset protection trust to protect non-qualified equities and other liquid investments. If domestic trust, consider top tier state jurisdiction such as Nevada. If off-shore, consider clean jurisdiction with sophisticated, modern laws designed to provide maximum protection against creditor attack, such as Nevis or the Cook Islands. Note: Consider multiple layers, such as Nevis LLC owned by Cook Island Trust.
3. Each physician has Delaware LLC or other entity to protect wages. A Florida wage account is limited to 6 months and therefore often not the best solution.
4. Each physician has homestead fully protected. If homestead in municipality exceeds ½ acres it is not protected by Florida homestead law. Consider deeding exposed property to corporate entity with 99 year lease to preserve homestead tax benefits. If homestead is not in municipality then 160 acres are protected. Consider leaving mortgage on property – even if not necessary – as good asset protection option. The mortgage can be paid down to avoid creditor attack.
5. Confirm investment rental properties and non-homestead real estate are protected by having title in multi-member LLC with operating agreement updated to take advantage of new Florida LLC law. Note: Do not have LLC without asset protection Operating Agreement drafted by an attorney who concentrates in corporate or asset protection law.
6. Office Space: If group practice owns condo office space or other real estate this property should likely be owned by a separate LLC or LP and leased back to the Group. Exposed real estate is low hanging fruit for creditors. Remember if the practice is to be judgment proof there should be no exposed assets.
7. Confirm IRA’s, pensions and similar plans are properly managed. Private pension plans must strictly follow complex regulations. You likely need a CPA or investment advisor experienced in pension plan administration. See Item #21.
8. Have a Plan B in event of death, disability or disagreement with partners. This requires a Shareholder Agreement or you may find you have your partner’s spouse as a partner. Do you have a shareholder agreement? Is it up to date? Is it adequately funded with life insurance? Mark Done only if you can answer yes to all questions.9. Conduct annual independent review of patient charts and billing, coding, and collection processes to insure compliance with Medicare/Medicaid/private insurance carriers
10. Conduct annual review of group corporate records to make sure basic corporate formalities are followed so that corporate veil cannot be pierced using alter ago theory. If professional association check if: (a) annual corporate minutes up to date; (b) separate corporate bank account; (c) stock certificates clearly show each partner’s interest; (d) tax records sync with corporate record.
11. Make sure individual medical malpractice policy and possible corporate malpractice policy in place. Conduct annual review of policy limits with medical malpractice broker who specializes in med-mal insurance.
12. Individual checking account you use for monthly expenses: If married, title as Tenants by Entirety (TBE); if single consider placing title in Delaware LLC.
13. Umbrella policy. This is a good, cost effective insurance product but make sure you check for gaps in policy. All insurance policies have limits and exceptions; make sure the “Umbrella Policy” does not contain gaps.
14. Insurance coverage to avoid business interruption or threats to profitability of practice: (a) Disability insurance; (b) Overhead insurance to cover practice expenses during period of disability; (c) Workers compensation insurance; (d) general liability insurance to cover slip and falls in office or parking lot; (e) adequate auto insurance.
15. Theft proof practice monies and accounts receivable. Have strict system for logging in all checks in master log and ensure properly deposited. No one person should control check logging system. In larger practices, have someone from CPA firm periodically review check logging system without notice.
16. Ensure trust systems in place for children and loved ones. Note: Make sure your estate plan is integrated with your asset protection plan.
17. Protect vacation home: Consider to title in LLC, Limited Partnership, or Tenancy by Entireties.
18. Auto and motor vehicles: If married, title in name of person who drives vehicle the most; not in joint name. Make sure all vehicles are adequately insured.
19. Boats or jet skis: Title in name of LLC with asset protection operating agreement.
20. Schedule target completion date for your asset protection plan. Write the date down on your office and smart phone calendars. Plan when the waters are quiet – prior to any lawsuit. Waiting too long may limit planning options and enable attack via the Florida Uniform Fraudulent Transfer Act, F.S. 726.
21. The most important item: Have team of experienced, caring professional advisors consisting of: (a) CPA; (b) estate and asset protection attorney; (c) qualified financial and pension plan advisor; (d) medical malpractice insurance broker; and (e) general liability insurance advisor.

Note: We welcome your questions. Contact Phil Rarick, Miami asset protection attorney, Rarick & Bowden Gold, P.A., at (305) 556-5209 or prarick@raricklaw.com.

* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection

planning attorney, guru, and friend. Alan is the author of Creditor Protection For Florida Physicians, an excellent and insightful book for physicians, attorneys, and CPA’s; it is available on Amazon.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

ASSET PROTECTION CHECKLIST FOR FLORIDA SMALL BUSINESS OWNER

Published on: February 27, 2015 | by Rarick & Bowden Gold

By Phillip B. Rarick, Miami Asset Protection Attorney*

Action Item	Done
Homestead is under ½ acre if in municipality; if not in municipality then under 160 acres Note: Consider leaving mortgage on property – even if not necessary – as excellent asset protection option. The mortgage can be paid down to avoid creditor attack.
Trust systems in place for children and loved ones and integrated withcreditor protection structures
Vacation home is titled in LLC, Limited Partnership, or Tenancy by Entireties
Rental properties are titled in Florida LLC or Limited Partnership. If single, consider Delaware LLC
All Florida LLC’s have (1) Operating Agreement with charging order protection; (2) separate bank account; (3) multi-member
All corporate records have been annually reviewed by corporate attorney
Exposed equity investments protected by asset protection structure Note: Exposed investments are those not protected by Florida law. Protected investments are IRA’s, 401k’s, annuities, pension plans, life insurance, Florida pre-paid tuition plans, and 529 plans.
If married, checking/savings account owned as Tenancy By Entireties (TBE) Note: Confirm by going to bank and checking the bank signature card.
Auto and motor vehicles : If married, title in name of person who drives vehicle the most; not in joint name
Boats or jet skies: Title in name of LLC
Adequate property and casualty insurance
Adequate auto, vehicle, and boat insurance
Umbrella liability insurance Note: Confirm with agent that there are no gaps
If professional: adequate malpractice insurance and experienced malpractice agent who specializes in such coverage
Team of caring and qualified advisors, including CPA, attorney, investment advisor, and insurance agent

For more information, contact Phil Rarick, a Miami asset protection attorney, at (305) 556-5209 or info@raricklaw.com.

* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection planning attorney and guru.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

4 Take-Away Points To Know Under Florida’s New LLC Law

Published on: February 3, 2015 | by Rarick & Bowden Gold

By Phillip B. Rarick, Miami Asset Protection Attorney

Florida’s new LLC statute that became effective this past January 1, 2015 made fundamental changes in the state’s limited liability company laws. These changes are so basic that we recommend that you should have a Miami asset protection attorney review all LLC’s created prior to 2015. A key provision of the new law states that an LLC will be Member Managed unless the Operating Agreement or Articles of Organization expressly provide otherwise. F.S. § 605.0407(1). The new law drives home four Take-Away Points:

Every LLC should have an Operating Agreement. It may be tempting to use an on-line service to create an LLC. This service will likely file a simple 1-3 page Articles of Organization for you and send you a corporate book and seal. Under the new law, the default provision will mean you have established a Member Managed LLC and it may be construed as a single member LLC unless you clearly provide otherwise in the Operating Agreement or Articles of Organization. In Florida, we never recommend Member Managed LLC’s and you usually want to avoid a single member LLC. The Operating Agreement is the true “control center” of your LLC: it controls management, ownership, administration, and if properly drafted and structured, has strong provisions to make it difficult for creditors to attack. An LLC without an Operating Agreement is most likely a weak entity providing little or no asset protection and possible control issues for the primary investor.

7 Point Auto Accident Checklist

Published on: January 19, 2015 | by Rarick & Bowden Gold

Note: Keep In Your Car Glove Compartment in Case You are in an Auto Accident

Safety first. Move to a safe location. If there are any injuries or property damage call 911 immediately.

Stay calm. Focus on task at hand documenting the accident. Be courteous but don’t admit fault. An investigation may later show you were not responsible.

Our Real Estate Services – and 3 Important Tips

Published on: January 5, 2015 | by Rarick & Bowden Gold

A big focus of our practice is helping our clients better protect their real estate investments. However, some of our clients are surprised to learn that our legal services extend beyond real estate asset protection. Here is a short list of our real estate services:

– Purchase or Sale of Residential or Commercial real estate. We will represent you on your sale or purchase. It is often difficult to find reliable, cost efficient title companies. We work in close collaboration with local, experienced attorneys who provide excellent title services. We can help you close virtually any real estate transaction at a cost often below other title companies.

– Commercial Leases. A good commercial lease is essential to protecting the value of your property by insuring that good tenants stay, and bad tenants can be quickly and economically removed. A strong, modern lease can help insure that you keep all your properties fully rented and tenants current in their payments. My partner Jay Beskin is experienced with commercial leases and is available to help make sure that your new lease protects your interests. An old lease may not be doing a good job of protecting you in 2015. If you have an old lease, Jay is available to review it.

7 Point Checklist for Pre-Divorce Planning

Published on: August 6, 2014 | by Rarick & Bowden Gold

First, let’s hope you don’t need this. But, if you do, here is a checklist of key estate planning items that should be considered prior to filing a petition for dissolution of marriage:

Note: This is a partial list of key items. Invariably there are other considerations. Consult your estate planning attorney.

1. Revise living revocable trust or will: