Protection | Asset Protection Blog - Asset Management

March 6, 2010

Appellate Mediation Leads To More Successful Mortgage Modifications According To Tampa Foreclosure Attorney

Filed under: Asset Protection, Chapter 13, Foreclosure, GM, Mortgage Foreclosure, asset, bankruptcy, blog, mediation, modification, mortgage, mortgage modification, protection — Tags: Appellate Court, Asset Protection, Chapter 13, client, fifth-district, inevitable, mediation, Mortgage Foreclosure, motions-because, protection, the-appellate, uniform-because — ShawnInOhio @ 9:22 AM

One of my asset protection client introduced me to an attorney in Tampa, named Mike, who has a very large and successful practice defending mortgage foreclosures and negotiating mortgage modification. I spoke with Mike and asked him about his client’s experiences during court-ordered mediation with their mortgage lender during foreclosure litigation. Mike said that mediation in state court proceedings is usually a waste of time for his clients

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February 24, 2010

Five Reasons To Switch To A Credit Union Credit Card

Filed under: finance, financial privacy, persoal Finance, personal Finance, protection — Tags: protection, rate-limit, unique-consumer — WbDowey @ 2:10 PM

Interest rate limit is a unique consumer protection.

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February 17, 2010

Creditors’ Attorney Discusses Collection Tactics: What Works And What Doesn’t Work

Filed under: Asset Protection, Creditor Rights, Florida, Head Of Household, Wage Garnishment, asset, bankruptcy, business, charging lien, garnishment, llc, protection, som — Tags: asset, bankruptcy, business, clients, creditor, protection, recall-the-last, the-debtor — WbDowey @ 6:14 PM

Effective asset protection planning requires anticipation of what creditors’ attorneys may and will do to collect their judgments.

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January 28, 2010

Can Police Search Your Cell Phone without a Warrant?

Filed under: Asset Protection, Ohio, Software, blog, communications privacy, protection, som — Tags: Apple, Cell, communications privacy, decision, person, police, Power, protection, som, supreme, supreme-court, telephone — WbDowey @ 1:40 PM

Modern cell phones do a great deal more than simply send and receive calls. They’re sophisticated personal computers with the same capabilities, and more, of a laptop PC. You can use them to send and receive e-mail and instant messages, browse the Internet, keep track of your appointments, take photos and videos, etc. If you think that any of this information is “private” in the sense that it’s legally protected, think again. In most cases, it’s not, especially if you’re arrested. If you’re not under arrest, it’s fairly clear that police have no right to search your cell phone without your consent. At U.S. border crossings, though, customs authorities have carte blanche to copy all data on your cell phone, your laptop, etc. ( Click here for details.) Nearly all state and federal courts that have considered this question have ruled that data on your cell phone has “no expectation of privacy.” Their decisions have derived mainly from two Supreme Court rulings decided many years before cell phones were invented.

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January 26, 2010

Asset Protection Strategies

Filed under: Asset Protection — Tags: Accounts Receivable Financing, Alaska, asset, Asset Protection Strategies, Asset Protection Trusts, Business Owner, creditors, Delaware, Discretion, Distributions, Earned Assets, Great Tools, Independent Trustee, Irrevocable Trust, Money, Necessary Steps, offshore-trusts, protection, Receivables, Rhode Island, Simple Solution, Spendthrift Clause, Strategies — ShawnInOhio @ 3:56 AM

Asset Protection StrategiesThere are many strategies to take the necessary steps in order to protect your hard earned assets. Unfortunately, there is not a simple solution for every situation. Each person will choose a different method. It is important that the method chosen will be the most beneficial in protecting all of your assets.Asset Protection TrustsAsset protection trusts are great tools to protect assets. There are many states that allow these trusts. Before, it was required for wealthy people to have offshore trusts. While this did protect their assets, it became very expensive and time consuming due to additional reporting requirements. Some states that now support asset protection trusts include Rhode Island, Alaska, Delaware and Nevada. The great thing about these trusts is that you do not need to be a resident of the state to buy into one. These trusts work to protect your assets by placing a portion of your assets in the hands of a trustee. The assets that are placed in the irrevocable trust will not be able to be touched by creditors.Protect Assets from Your ChildrenIn addition, the trusts can allow you to shield assets from your children. In order to set up this type of trust, there are some requirements that must be met. The trust must be irrevocable, it must have an independent trustee, distributions can only be made at the discretion of the trustee, the trust must have a spendthrift clause, some of the assets must be located in the state in which the trust is in and the documents pertaining to the trust must be located in the same state as the trust.Accounts-Receivable Financing to Protect AssetsIf you are a business owner, you may benefit from accounts-receivable financing. This is when you are allowed to borrow money against the receivables of the business and then place the money into a separate account that is non-business. This tool deters creditors and protects assets that would typically be attacked.Remove Equity for Asset ProtectionAnother way to protect your assets is to remove all equity from them. When this is done, you can place the money into assets that are protected by your state. For example, if you are the owner of an apartment complex, you could take a loan against the equity of the building and place the money into an annuity, Roth IRA on Roids, or another protected asset.Family Limited Partnership in Asset ProtectionFamily limited partnerships are also good asset protection tools. This is when assets are transferred into the partnership. The assets are then exchanged for shares in that partnership. Since the family limited partnership owns the assets, they are completely protected from creditors under the Uniform Limited Partnership Act. The general partner is still at risk, making the irrevocable trust a little stronger, however.Simpler Ways to Protect AssetsMany of the mentioned strategies may be complex and confusing. There is no need to panic. There are easier ways to protect your assets from creditors. These strategies are inexpensive and effective. One of the most common strategies used by married couples is to transfer all assets into the spouse’s name. This will protect your assets, but if there is a divorce, the end result could cost you those assets. Make use of any employer-sponsored retirement plan. Most times, these plans are protected and offer a great way to save and protect your assets. Always take advantage of state laws regarding asset protection. The laws pertaining to homesteads, life insurance and annuities can be great tools when planning to protect your assets. For example, if you pay down your mortgage, you may be protecting the cash that would otherwise be vulnerable. Be sure to contact your state to find out what protection is offered before making any decisions. One thing to remember when planning to protect your assets is to never combine business assets with your personal assets. If the business fails, your personal assets could be in jeopardy if the assets have been combined.Protect Your Assets Before There is a ProblemNo matter what method you think will be best, always consult with a professional such as Estate Street Partners. Make sure you do some research and get references before hiring a consultant. If you have found an expert to help you plan, take the time needed to discuss every option. You want to make sure you are taking the right steps to protect all of your assets in the event of a lawsuit. Finally, don’t wait. Protect those assets before there is a problem.

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January 25, 2010

How to Maintain your Companies Asset Protection

Filed under: Asset Protection — Tags: asset, Asset Protection, assets, Bank Cards, Board Of Directors, Busin, Business Account, Business Purposes, Checks, companies, Corporate Structure, Corporate Veil, corporations, Demonstration, Financial Transactions, Formalities, Invoices, Limited Liability Companies, Maintain, New Business, Operating Agreements, protection, Resolutions, Stockholder, Your — ShawnInOhio @ 7:15 PM

One of the biggest problems we encounter is a company that failed to maintain its company in a way that provides them with continued asset protection. When you start a new business, you should create a corporate structure to safeguard your assets. When starting a company you must choose a corporate structure that works for you. And while they all have different formalities, unfortunately, many businesses fail to operate in a way that affords them with continued protection.

Corporate Records

Corporations in most states require the maintaining of corporate records. The use of this term here has nothing to do with taxes or invoices, though such documents should be maintained in accordance with your states and federal regulations. Corporate records in this context refer to the required documentation of stockholder and board of directors meetings. Most states require that these individuals meet annually, if not more frequently, to discuss the operation of the business. What must be discussed in these meetings will vary according to your operating agreements and state regulations. Not only must these meetings occur, but an accounting of them must be maintained within the company. This accounting can be minutes, resolutions, etc.

While most states do not require limited liability companies to hold these meetings or maintain these records, demonstration of these documents further exemplify the standing of your company and could help you in a lawsuit where the other party attempts to pierce the corporate veil and hold you personally responsible for the debt of the company.

Financial Transactions

All of the business’s banking transactions should occur as if the business were a person separate from yourself. The business should have its own bank account with bank cards and checks. You should never deposit checks payable to your company in your own account. The funds in the business account should only be used for business purposes. Never use your business account to pay your personal expenses. Not only does this limit your business’s ability to protect you individually, you could also be held individually responsible for misconduct.

Licensing

While the licensing requirements vary from state to state, it is important to stay current on your areas licensing requirements. Most counties, states, etc. require licensing for each area you plan to operate in. For example, if you are operating a floor cleaning business in southern Nevada, you may need a Nevada state business license, a Clark County license, a license for North Las Vegas, Henderson, Boulder City, etc. Additionally, these licenses will require annual maintenance. Failure to maintain the appropriate licensing may lead to big fines and penalties.

These are just a few of the formalities that must be adhered to in order to maintain your business. You should always consult an attorney before forming a company not only to discuss corporate structures, but also to discuss licensing and other legal issues to make your corporation compliant with locate rules. If you have any questions regarding this article or would like to discuss the maintenance of your company with one of our attorneys, please call us at (702)448-4962 or visit our website at www.mcdonaldlawgroup.com.

Disclaimer: The McDonald Law Group provides the information in this web site for informational purposes only. The information does not create an attorney-client relationship or constitute legal advice. Please contact our attorneys if you wish to discuss in more detail the contents of this web site.

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Offshore Asset Protection

Filed under: Asset Protection — Tags: asset, Asset Seizure, Bank Secrecy, Bearer Shares, Brokerage Accounts, Burden Of Proof, Confidential Method, Foreign Trust, Fraudulent Conveyance, Judgment Debtors, Lawsuit Protection, Liquid Assets, Nominee Directors, Nominee Officers, Offshore, Offshore Asset Protection, Offshore Bank Accounts, Offshore Corporation, Offshore Entities, offshore-banks, offshore-trust, protection, secrecy-laws — ShawnInOhio @ 5:16 AM

OFFSHORE ASSET PROTECTION

Aggressive asset protection, in particular lawsuit protection, often involves use of offshore entities. Certain foreign jurisdictions do not recognize the judgments of United States courts. To reach assets held offshore, it may be necessary for the creditor to retry the claim in the foreign jurisdiction. This would require hiring local attorneys and having witnesses, exhibits and other evidence presented in the foreign court. The costs associated with such an action may deter a creditor from pursuing the debtor further.

A very useful method of obtaining asset protection is through the use of a Foreign Trust. Typically, the trust is located in a jurisdiction with laws favorable to judgment debtors. This means a very short statute of limitations for fraudulent conveyance and a very high burden of proof for the creditors to overcome. A duress clause is added to the trust, which makes the trust irrevocable in case of a lawsuit or threatened asset seizure. In the event that a creditor attempts to have the foreign court assert jurisdiction over the trust, a clause in the trust agreement provides the power to move the trust to a new jurisdiction.

Additional protection can be obtained by creating an offshore corporation. This corporation would achieve greater confidentiality and protection through the use of nominee officers, nominee directors and bearer shares. The corporation would hold title to bank accounts, brokerage accounts and other investments. The bearer shares would be controlled by the offshore trust. The offshore corporation would typically be formed in a jurisdiction other than the foreign trust’s site.

Offshore bank accounts provide a safe and confidential method of holding liquid assets. The bank account would generally be opened in a country with strict bank secrecy laws and with modern communications and financial facilities. Many offshore banks offer checking accounts, time deposits, securities accounts and even VISA and debit card services. These accounts can be denominated in U.S. Dollars or any other major foreign currency.

Offshore arrangements are an excellent means of separating assets that would otherwise be exposed to judgment creditors. To avoid the potential loss of one’s wealth, a “nest egg” of assets can be held in an offshore structure for easy access, privacy and protection from seizure. Properly implemented, the above measures provide the creditor with a legal obstacle course, resulting in the most comprehensive asset protection available.

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Partnerships as Asset Protection

An important goal of estate planning is to protect income and assets from creditors’ claims and tax collection. While many people think asset protection involves dishonest techniques, there are many ways to protect personal property, real estate and other assets. In addition to federal and state laws that exempt certain types of property from creditors’ claims, there are numerous estate planning tools that may be able to shield assets from future creditors and reduce or eliminate estate or income taxation. One such tool is the family limited partnership (“FLP”).

Family Limited Partnerships and Asset Protection.

An FLP is a valuable asset protection strategy for a family whose members want to preserve their assets while retaining control over them. An FLP is a specially designed limited partnership, consisting of one or more general partners who are responsible for managing partnership affairs. The other partners are called limited partners, and they are not permitted to participate in any management decisions and generally have no vote and have limited rights.

Valuation Discounts.

Because interests in FLPs are generally not marketable (that is, interests in FLPs cannot be converted easily to cash at a known market price), a discount for lack of marketability is typically appropriate. Such a discount significantly reduces an FLP’s value for estate tax purposes. A minority discount may also be available to reduce the valuation of an FLP interest given to a limited partner who has a noncontrolling interest in the FLP.

Annual Gift Tax Exclusion and Gift Tax Exemption.

FLPs are often designed to reduce estate and gift taxes by taking advantage of valuation discounts while making gifts utilizing one’s annual gift tax exclusion of $12,000 and the gift tax exemption of $1,000,000.

Once an FLP has been established and property is transferred thereto, limited partnership interests may be given to on family by means of an annual program taking advantage of the $12,000 annual gift tax exclusion. Larger blocks of limited partnership interests, taking advantage of the gift tax exemption, may also be made without incurring gift tax.

Shielding Assets from Creditors.

An FLP provides a substantial measure of protection against creditors. By using such an entity, the family assets will be titled away from one’s family, although they are given ownership in the family assets. Without the partnership, a transfer to a child could involve giving title to the child, exposing the title to creditors, spouses, and taxing authorities. The transfer of limited partnership interests passes no control, and any claims by creditors, spouses, or taxing authorities against a child may only be asserted against the limited partnership interests without the ability to reach the property itself.

Absent a fraudulent conveyance, a Florida judgment creditor cannot reach the assets inside the partnership and cannot attach the partnership interest. A creditor is limited to obtaining a charging lien. This means that the creditor would be entitled to distributions only when the FLP actually declares distributions.

If no distributions were made, then the creditor would receive nothing. Additionally, the IRS has ruled that a creditor with a charging lien on a partnership interest must recognize a pro rata share of the partnership’s income, whether or not it is distributed. Accordingly, creditors rarely assert charging liens against partnership interests or will settle their claims at a substantial discount.

Conclusion.

Taking steps to protect your assets from creditors’ claims, the availability of valuation discounts to reduce the estate or gift tax value of an FLP, and strategic use of the annual gift tax exclusion and gift tax exemption can result in significant preservation of your assets.

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January 24, 2010

529 Asset Protection and Plans

Filed under: Asset Protection — Tags: Added Benefit, asset, Asset Protection Plan, College Savings, Federal Income Tax, Federal Income Tax Withholding, Financial Incentives, Financial Troubles, Free Gift, Future Education, Income Tax Withholding, Investment Group, Irs Tax, Lawsuits, Plans, protection, Protection Strategy, Sayings, State Tuition Plan, Tax Liability, Taxpayers, Umbrella Insurance, Withdrawals — ShawnInOhio @ 3:15 PM

529 Asset Protection and Plans :

To start with Asset Protection is the protection of your assets, This can be useful during times of financial troubles. One of these being unlawful Lawsuits in which your assets may other wise be seized. This comes in the usual forms of an Estate Trust, Usually set up from the body of the State and your County of Residence.

A 529 is a State Tuition Plan that is set up from the State level, This enables families to save for there Children’s future Education and well being. A 529 Asset Protection Plan is available to all Taxpayers, Regardless of there income and other income factors. This type of plan can allow for the savings for Education while possibly reducing the families tax liability in a lucrative manor.

Advantages include to investors, sayings and withdrawals exempt from federal income tax withholding. Most all States offer there own 529 Plan, Run through a separate, Management Investment Group of that particular States choosing. States are also free to add there own Financial incentives which can be another added benefit, Including the IRS Tax benefits which have been mentioned.

Additional Benefits are, Investors may also have other benefits that can make this type of College savings even more lucrative, Opposed to traditional savings plans. Looking at a Traditional Custodial Savings Plan, These can be made as a Tax free gift between $10,000 and $12,000 dollars.

Also worth noting these types of Plans also make for a nice Asset Protection Strategy that you may well want to consider. These can make good use of asset protection when Umbrella Insurance fails to cover you. This together with everything else, Makes these plans a real win win situation.

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Understanding What an Offshore Asset Protection Trust is

Filed under: Asset Protection — Tags: American Citizens, asset, Asset Protection Strategies, Asset Protection Trust, Beneficiary, Best Interest, Cash Flow, Expansions, Frivolous Lawsuit, Heir, Interest Payments, Legal Documents, Litigious Environment, Necessary Parties, Offshore, Offshore Asset Protection, offshore-trust, offshore-trusts, protection, Setting Up A Trust, Settler, trust, Trust Lawyer, trustee, understanding, What — ShawnInOhio @ 1:15 AM

With the increasingly litigious environment we live in, many of us are interested in asset protection methods to offer some sort of protection against a frivolous lawsuit. An offshore asset protection trust is one such method to protect your foreign assets. An offshore asset protection trust is not on any land owned by the United States.

To set up an offshore asset protection trust, it is best to understand all of the necessary parties that will be involved. There is the trustee who sets up the offshore trust with the help of a settler. The beneficiary is the one who is the heir to the offshore trust’s contents.

There are certain rules and regulations that you must adhere to when setting up an offshore trust for asset protection. One is that American citizens are taxed from any income made world wide, this includes any interest, payments and expansions. The U.S. will allow you to move any assets offshore, but you must show all records of cash flow and values.

Setting up an offshore trust is a complicated process with many legal documents needing to be filed both in the United States and the location of the offshore trust. It would be in your best interest to consult a lawyer who works with offshore trusts to ensure everything is set up correctly. If you set up your offshore trust correctly, you will have a stronger line of protection for your assets. There is a wealth of information available about setting up offshore trusts for asset protection on the internet. It is beneficial to do as much research as you can that way when you do meet with an offshore trust lawyer you understand the basics of setting up a trust and already have specific questions created.

For more resources about asset protection or even about asset protection trust and especially about asset protection strategies please review these links.

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