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Articles Tagged with asset protection

Now may be an excellent time to attack a common misunderstanding about living revocable trusts:   These trusts do not protect your assets if you are sued.   If you can be sued, your revocable trust can be sued.

Some people believe that the living trust is like a “pink pill” solution:  it solves everything.   While the living trust is a powerful legal instrument that virtually every person should have because, among other benefits, it minimizes or prevents the intervention of a court into your personal or financial affairs, it does not solve all legal problems.

Specifically, the living revocable trust is not an asset protection entity.   If you have any concern that you might be sued due to a foreclosure or some other matter, I would  advise you to schedule an asset protection consultation with this firm.  There are many options to consider.

By Phillip B. Rarick, Esq. and Gene C. Sulzberger, CFP®, J.D.

In the United States there are multiple estate and gift tax traps if you are not a U.S. citizen or your spouse is not.  If you are a non-resident, or a resident with a Green Card and own property in Florida or other parts of the United States, you need to know about these tax traps.  U.S. estate and gift taxes are very harsh for the non-resident who has not done the proper planning.

Scenario: A  non-resident, non-U.S. Citizen with no Green Card who purchases a $1.5 million house would trigger upon death in 2011 an estate tax of $495,000 and likely probate fees in Florida of at least $15,000.

______ #1.      Trust Funding. After we signed your trust, we reviewed the funding of your trust and I gave you detailed Funding Notes.  Have you followed up on these instructions?   Funding is simply the transfer of your assets into your trust.    It is a good idea to annually review the funding of your trust. It is also advisable to annually sign a new assignment of assets into your trust, that will help sweep into the trust assets acquired to date.

______#2.       Successor Trustee. This is the person you have appointed to step into your legal shoes if you become incapacitated – in other words, one of the most important decisions you can make. Who have you appointed to take charge if you are incapacitated? What is the order of succession of trustees who will take over management of your financial affairs if you are unable to do so?    If you have any question whatsoever about your order of succession, please call the office.

______#3.       Transitions. Has there been a marriage, divorce, or separation of anyone named in your will or trust?    Has there been a birth or adoption of a child or grandchild?  If so, your estate plan may need to be amended.

Who is Impacted by this Decision:

Anyone with ownership interest in a single member Florida limited liability company (LLC).

Executive Summary:

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