Ownership of Property
What's the best way to hold title to your home or other assets? The way you own a property will determine whether any creditor or the IRS can seize it. Also, it determines how much tax you pay.
There are many things you can do to effectively provide asset protection before a claim or liability arises, but few things will afterwards. That's because what you do after a claim arises can be undone by "fraudulent transfer" law. Moreover, the point at which a claim arises is earlier than you might think - it is, for example, usually much earlier than when a demand letter or a process server shows up at the door.
Our educational workshops on asset protection and Asset Strategy Reviews can assist you in the following:
- How to avoid joint liability on your spouse's debts
- Protecting jointly held property from creditors
- Get off the "Hot Lists" for Attorneys; Lawsuits with Potential Windfalls
- Personal Assets held within a Family Limited Partnership
Family Limited Partnership
According to some experts, the Family Limited Partnership may be one of the most important, yet least known asset protection entity to protect your personal assets against a judgment creditor. If done correctly, a creditor of an individual or business partner may be completely thwarted from attacking assets held within the Family Limited Partnership. We can assist you in the following court and battle-tested strategies:
- Forming a Family Limited Partnership
- Revocable and Irrevocable Family Trusts (Probate Avoidance)
- Estate planning and tax benefits within a Family Limited Partnership
The word "family" in the name of the limited partnership defines the fact the partnership is owned mostly by family members or possibly a revocable family trust.
Another reason for holding your assets in a Family Limited Partnership is that it is difficult to transfer assets from you individually to your loved ones without excessive loss. This is mainly due to probate and taxation. Not only is probate a lengthy process, it encourages family infighting and can severely erode your families assets. When Elvis Presley died all that was left of his 10 million dollar estate was 2 million dollars. Definitely a case where no planning was taken to implement asset protection and estate planning.
With municipalities and States having their tax base eroded due to the downturn of economic activity and the increase in foreclosures they have no choice but to tax those they still can every which way. Legally through asset protection entities and wealth management you can navigate through this economic mine field.
Why leave yourself, your family and or your business at such a risk? Put our attorney-assisted asset protection strategies in place and consider the option of estate tax planning and its many advantages not only in regard to asset protection but also in regard to insuring freedom of movement, privacy and wealth accumulation without excessive taxation.
When a Family Limited Partnership is formed, it should be in a state where the exclusive remedy is a "charging order" and the only recourse creditors have against the limited partnership. It creates, in essence, a lien against the owner’s interest in the limited partnership. With a charging order, a judgment creditor may be successful in securing a lien, but the creditor will never be able to force a distribution of partnership assets.
Why is the "Charging Order" so important to you?
It will force the creditor to negotiate with you. When a creditor secures a charging order with the possibility of receiving no money in the future or even a potential tax liability, the creditor will come to the realization that the charging order is of no value. At that point in negotiations, if you can get a creditor to settle for far less than he would have otherwise, the asset protection plan incorporating your Family Limited Partnership worked for you.
The Family Limited Partnership is one of the most powerful asset protection entities we use to protect you. There is a long and solid body of law that protects limited partnership assets -- when the limited partnership is properly drafted and funded. In conjunction with the limited partnership and depending on your liabilities and assessment of risk, we may combine more sophisticated techniques to keep potential creditors at bay.
The economic downturn has had an impact on millions of Americans. Many will lose all of their assets and will have to start from scratch. Those with the prudence to seek asset protection planning may be able to keep the bulk of their assets.
Often asset protection and estate planning work together. We have over two decades of extensive experience and we are among the most knowledgeable experts in this unique field.
Asset protection will allow you the comfort of knowing your hard-earned assets are completely protected. Our attorney-assisted asset protection plans allow you to sleep better at night!