A Brief Explanation of Limited Liability Companies – Summary: A limited liability company or “LLC” is a business entity that is authorized by specific legislation in most states of the United States and in many foreign countries. In almost every instance, the state or country in question issues a charter to the LLC upon its formation. The most significant characteristic possessed by LLCs is part of its name, that is, it provides limited liability. In this regard, it is very similar to a corporation.
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ASSET PROTECTION AND MARITAL PLANNING – Summary: Under California law, a married couple can transmute community property into separate property. See Family Code Section 850. The agreement of spouses to separate and divide their community property whether by formal written contract or informal transmutation between themselves will be enforced. is given.
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PRESERVING, PROTECTING & TRANSFERRING YOUR LEGACY ARTICLE: – This article goes into greater detail regarding the history of asset protection, why liability exposure is increasing as well as describing the seven steps on the “Wealth Strategies Counsel Ladder of succes”. Additionally exhibits, graphs and a checklist are provided. Those who fully review this article will find an additional perk within it’s content
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Did Your Work This Hard So the IRS Could Inherit Your Wealth? – Summary: Given the proliferation of frivolous lawsuits, extraordinary plaintiff’s claims, changes in IRS codes and tax laws, rising divorce rates, ‘predatory’ creditors, and far-reaching liability that courts are increasingly imposing on entrepreneurs and professionals – Southern California’s business owners – even the small business owner, and not just the affluent – are directing their attention to protecting their assets and preserving their estates like never before.
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DOMESTIC ASSET PROTECTION TRUSTS – Summary: The general rule is that self settled trusts are not protected from creditors. However, recently the States of Alaska, Delaware, Nevada, Rhode Island, Colorado, Missouri, Utah and South Dakota have provided various degrees of asset protection legislation in a self settled trust. The Colorado, Missouri and Utah asset protection statutes are only marginally effective, and, as such, not worthy of further discussion. The Alaska, Delaware, Nevada, Rhode Island and South Dakota legislation allowing for domestic asset protection trusts (“DAPTs”) is similar in many respects to the asset protection trust legislation found in several foreign jurisdictions.
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For Whom the Bells Toll: Asset Protection May Be for Everyone – Summary: There are many different types of individuals that generate terrific liability exposure. But what about the non professional or non business owner – the average individual who is not engaging in a liability related activity? Does the average person really need Asset Protection Planning?
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From Tragedy to Big Tax Savings – Summary: The Judge ruled in our favor and our client and his Company were able to receive a huge income tax benefit. Of course, the moral of the story is that our client and his Company had the proper tax and legal advice which included a very practical and well thought out plan. Of course, the preparation of a compelling brief to the Tax Court along with a winning trial presentation and closing argument were critical. There is, obviously, no substitute for creative and well thought out tax strategy followed by the implementation of a very specific and practical plan.
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HOW TO AVOID PROBATE – ALMOST – Summary: Why is Probate to be avoided? Well, first of all, it can be very expensive. Legal and Executor fees and other costs have to be paid before your assets can be distributed to your heirs. Another disadvantage of Probate is that it usually takes time to complete the court process — anywhere from 9 months to 2 or 3 years, but sometimes, much longer.
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Is Your LLC’s ‘Operating Agreement’ Sufficiently Worded To Protect Your Personal Assets? – Summary: Once you’ve formed a limited liability company (LLC) by filing the Articles of Organization, what’s your next step? The most critical component of an LLC is the ‘Operating Agreement’.
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LIMITED LIABILITY COMPANIES (“LLCs”) AND THE CHARGING ORDER – Summary: The member interest of the LLC affords much better creditor protection to the owner. In the US and Offshore jurisdictions with a US type LLC Act, a creditor of a member of an LLC is entitled only to a Charging Order rather than the right to levy directly against the LLC assets. The Charging Order is a judgment creditor’s remedy effectuated by court order which is directed to the LLC for the benefit of the creditor.
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Nevada: On the Cutting Edge With Family LPs and LLCs – Summary: Nevada has moved to the cutting edge of LLC rules by enacting new legislation to re-write their code to allow ‘Restricted Entities’ which will allow this type of valuation. In a nutshell, the new law allows a default 10 year period restricting liquidation of the entity’s underlying assets. This will allow LLC’s to exist with restrictive Operating Agreement provisions, allowing greater valuation discounts for gifted interests to family members.
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Non Probate Transfers – Summary: Upon the death of a decedent, certain types of property interests may often be transferred without a probate proceeding. However, avoiding probate does not necessarily mean automatic transfer of title to the successor.
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NOW THAT YOU’VE BUILT UP THAT REAL ESTATE EQUITY, IS IT SUFFICIENTLY PROTECTED? – Summary: Real Estate is generally considered to be a very valuable and worthwhile investment. Although the real estate market has slowed down recently, many individuals have substantial equity in their real estate investments and in many cases real property assets constitute the major part of their estate. If you own real estate in addition to your residence, you need to pay attention to this warning.
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Preserving, Protecting & Transferring Your Legacy – Summary: This article goes into greater detail regarding the history of asset protection, why liability exposure is increasing as well as describing the seven steps on the “Wealth Strategies Counsel Ladder of succes”. Additionally exhibits, graphs and a checklist are provided. Those who fully review this article will find an additional perk within it’s content.
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Protect Your Business – Summary: In the midst of the nation’s banking crisis, it’s wise to re-examine how you structured your business bank accounts. That’s why we’ve gathered the latest banking rules to help you understand how to protect your money without having to stash it in banks all over town.
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Putting Personal Residences into an FLP or FLLC: A No-No – Summary: The question of whether or not a personal family residence should be placed into a Family Limited Partnership (“FLP”) or Family Limited Liability Company (“FLLC”) is a frequent topic for discussion. The impetus for such a decision is based on the theory that the FLP or FLLC affords the owner a degree of asset protection against personal liability because a creditor is allegedly limited to a Charging Order Remedy when trying to get at the assets inside the FLP or FLLC.
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The Advantages Of Forming An LLC – Summary: The Limited Liability Company (LLC) is a flexible form of entity that is designed to provide the protective features of a corporation, with the tax advantages and operational flexibility of a partnership.
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The Nevada Asset Protection Trust – Summary: In the late 1990s, several states began to reverse the general rule concerning self settled Spend Thrift Trusts and statutorily modified their laws accordingly. Delaware and Alaska along with Nevada are among the 11 states that have adopted such legislation. The Nevada legislation was enacted in 1999 and allows the Trustor or creator of the Trust to protect the principal of the Trust from outside creditors even though the Trustor is a beneficiary of the Trust.
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THE REAL COST OF PROBATE – Summary: Sorrow, emptiness, sadness and loneliness are over whelming emotions in themselves to deal with when losing a loved one. Probate is yet another obstacle many people face when trying to heal from tragedy – and it’s all too often unnecessary!
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THE USE OF FAMILY LIMITED PARTNERSHIPS AND LLCS IN ESTATE PLANNING – Summary: A Family Limited Partnership or LLC is typically utilized in an estate plan as a vehicle for making “leveraged” or “discounted” gifts to children or other family members and loved ones. The FLP is simply stated a partnership arrangement between family members wherein the senior family members maintain full control over the management and investment decisions relating to all of the underlying partnership property and make gifts to the junior family members of the limited partner interests on a discounted basis.
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THE USE OF LIMITED PARTNERSHIPS (“LPs) AND LIMITED LIABILITY COMPANIES (“LLCs”) IN ASSET PROTECTION PLANNING. – Summary: Use of LPs and LLCs in Asset Protection generally provide the necessary shield of liability while at the same time creating favorable and flexible tax consequences because they are pass through entities for income tax purposes. In addition, the potential limitation of the Charging Order remedy to creditors, makes LLCs and LPs even more attractive and practical for business operators and real estate owners. In view of the foregoing, a more detailed examination of these entities from an asset protection perspective is obviously warranted.
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Types of LLCs and Steps to LLC Formation. – Summary: This article reviews Formation and Articles of Organization, Purposes, Operating Agreement, Managers, Voting Power, Fiduciary Duties, Officers and Directors, Meetings, Personal Liability of Members, Distributions, Record Maintenance, Transfers of Member Interest, Dissolution and Winding Up.
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WHAT EVERY BUSINESS OWNER, PROFESSIONAL AND REAL ESTATE INVESTOR NEEDS TO KNOW ABOUT ASSET PROTECTION PAMPHLET. – Summary: Potential liability is obviously a major concern to business owners, professionals and real estate investors. This pamphlet briefly reviews the history of asset protection, why liability exposure is increasing, the three “P”s of Preserve, Protect and Process. An introduction to the “Wealth Strategies Counsel Ladder of success” is given.
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Why ‘People In the Know’ Choose Nevada For Their LLC. – Summary: Nevada’s business-friendly environment has been a key factor for individuals when researching friendly states in which to form an LLC. The main advantages of forming a Nevada LLC are outlined.
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WHAT EVERY DOCTOR AND DENTIST NEEDS TO KNOW ABOUT ASSET PROTECTION PAMPHLET. – Summary: Potential liability is obviously a major concern to Doctors, Dentists, and other Professionals. This pamphlet briefly reviews the history of asset protection, why liability exposure is increasing, the three “P”s of Preserve, Protect and Process. An introduction to the “Wealth Strategies Counsel Ladder of success” is given.
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ASSET PROTECTION PLANNING: WHY GO OFFSHORE ARTICLE. – Summary: Asset protection planing is introduced in this thorough article along with an explaination of its “Primary Goal”. The use of trusts as an effective foundation and Domestic Asset Protection Trust give additional background leading to the meat of the article that being Foreign Asset Protection Trusts (FAPT). The Major advantages and purpose of the FAPT are discussed along with a description of how they protect your assets.
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AN OUNCE OF PREVENTION (AND PROPER PLANNING) CAN OFFSET A POUND OR MORE OF LIABILITY. – Summary: I had two different sets of clients come in to me with major legal problems related to property they own. As you will be able to perceive after reading this article, these problems could have been drastically mitigated or even eliminated with proper planning and implementation.
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Asset Protection Planning – Summary: Asset protection planning has been practiced by attorneys, financial planners and accountants for several decades. Business persons have always had concern over the exposure of their personal assets to claims against the business. The corporate form of business entity with its shield of limited liability has been invoked for centuries. Certainly, protecting one’s assets from the myriad of risk involved in business and personal financial planning is not a novel objective or planning idea.
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Basic Contracts Your Business Needs To Consider. – Summary: Obviously, all contracts should be prepared and reviewed by competent legal counsel. However, there are a number of fairly standard contract provisions that are in most contracts but may not be familiar to non-lawyers. The following discussion will help you better understand the impact and importance of these provisions.
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Bullet Proofing Your Corporation. – Summary: Though you may believe that your business is a small, private company which does not need to follow the rules for large, public companies, the law does not make exceptions, only subtle distinctions that your attorney can explain to you.
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FDIC Insurance for Corporate Accounts. – Summary: the Federal Deposit Insurance Corporation (FDIC), which insures accounts up to $100,000.00 (Credit unions are insured by the National Credit Union Administration [NCUA]). For many individuals, a $100,000.00 insured amount is more than sufficient coverage for their personal accounts, although all of your single accounts at the same insured bank are added together and the total is insured up to $100,000. Do all your accounts exceed this amount?
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How To Avoid VEIL (Liability Shield) Piercing of Limited Liability Companies (“LLCS”). – Summary: It is critically important for LLC managers (“manager” refers both to the managers of the manager-managed LLCs and to the members of member-managed LLCs) to take all reasonable measures to prevent LLC veil-piercing. The principal such measures are outlined…
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Making Sure Your California Limited Liability Company Is In Proper Compliance. – Summary: If you have several LLCs or LLCs that are tied into your Estate Plan, keeping track of your annual filings, company records and tax documents can be time consuming and aggravating.
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Why Use Family Limited Liability Companies? – Summary: Most professionals now utilize FLLCs instead of LPs because FLLCs are less complicated to form and the manager of the FLLC is not personally liable whereas the general partner of a limited partnership is.
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Choices, Checklists & Considerations: A Guide To Everything Your Family Needs To Know To Put Your Affairs In Order. – This guide contains important information and checklists to help your loved ones put your legal and financial affairs in order after you pass away or should you become incapacitated.
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| The First Seven Steps To Take After The Loss Of A Loved One. – Summary: We have put together this guide to help you understand the seven steps you should take immediately after a loved one has passed away. Please contact us if we may be of service to you in any way, during this difficult time.
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