Estate Planning as a Career

Asset protection works best when you start before you have a significant number of assets that need protection. You need to fix the roof before the rains pour in. The earlier a trust is created, the greater the benefits.

The time you usually worry about your assets - when facing a divorce, lawsuit, creditor demands, or a tax lien - is when you can kiss your stuff goodbye. If you have not protected it by then, it’s not your property. It belongs to whoever the judge says it does.

Trusts used to be the last thing a middle-class taxpayer had to worry about. Estate taxes were the problem of the rich. A trust, along with appropriate use of corporations and limited liability companies, means never having to give your property to the ex-anyone again.

As it stands now, with modest homes in many parts of the U.S. fetching over $1 million, trusts are the most powerful asset preservation device available. In addition, all gifts and bequests should be made and kept in trust instead of being given outright.

What we call a BCT (Beneficiary Controlled Trust) goes by a more accurate description of “Crummey Defective Grantor Spendthrift Trust”.

Crummey is the name of an individual who challenged the IRS and won, not a depiction of the quality of the trust. For that alone he deserves your respect and admiration.

In our Beneficiary Controlled Trust, the beneficiary also serves as trustee, hence the control. Crummey powers are handled by the second trustee, known as the Distribution Trustee, but all control and decisions remain with the beneficiary/trustee.

The BCT is designed to:

1. Give the beneficiary beneficial use and control of trust property without having ownership which can be reached by creditors or distributed by a judge in a divorce case. You can’t lose property in a divorce settlement if you don’t own (more…)

Asset protection is not just for the wealthy any longer. When a middle class home can easily run a half million dollars in Florida, and over a million in New York or California, anyone can become a target of lawsuits, divorce courts, and the IRS.

You have to dig a well before you are thirsty, or in this case, build a legal fortress before invading barbarians reach your gate.

Your tools to protect your assets are:

* “no asset” corporation

* limited liability company (LLC)

* beneficiary controlled trust

C-Corp:

A “no asset” C corporation will be the management company for your LLC. The two work together to protect your property from those who would take it from you.

You are employed by the C Corp, not the LLC. You can also be the sole shareholder and hold all of the officer positions. Your corporation owns nothing but a checkbook.

Your corporation can pay for:

- medical insurance for the officers

- life insurance ($50 thousand limit)

- retirement plan

As an officer, you can be reimbursed for out-of-pocket medical expenses through a medical expense reinbursement plan (MERP).

Entertainment expenses directly related to the business can include:

- training expenses

- travel

- meals

- computer expenses

- phone expenses

- business gifts up to $25 per recipient

Never let your corporation pay for personal items. Commingling of funds could pierce the corporate veil and make you personally liable for corporate debts in the event of a judgment against the corporation.

This is just a partial list of deductions for your corporation. Consult your CPA or tax advisor for the latest changes in allowable deductions.

LLC:

Your limited liability company is where you earn your income. Your LLC should also own any vehicles, eq (more…)

Dealing with the death of a loved one is extremely hard and to make matters worse, when it comes to probate it can get even harder. For the loved ones left behind, sometimes the cost of probate can become overwhelming and in many cases, unaffordable. Even when an inheritance is expected, it could be many months, even years before the inheritance is actually received. What is even more unfortunate is that to get that inheritance, you often have to pay numerous fees upfront. The light at the end of this tunnel is that now you have the opportunity to get help with an inheritance loan.

Fees Involved In Probate

It may surprise you that there are numerous fees involved in probate. If this is your first experience with probate court, you may find yourself overwhelmed with costs associated with the procedures. Here is a list of some of the most common probate fees:

- Attorney Fees - Attorneys are necessary to ensure that everything is followed by law and distributed correctly as well.

- Probate Filing Fees - These are required by the courts to begin the proceedings

- Court Costs - You have to pay for the use of the courtroom, the judge, and other aspects that are included with court costs.

- Legal Notice Publishing - You are typically required to publish a legal notice, to notify creditors and other people with an interest in the estate.

- Executor’s Bond - Sometimes, the will or the court requires the executor to post bond before handling the estate.

If the estate includes property, there are additional costs during the probate period, for example:

- Property insurance

- Mortgage payments

- Real estate taxes

- Maintenance and repairs

- Fix-up costs for sale of the property

- Utility costs

Paying Probate Fees

What is most unfortunate for the family m (more…)