Asset Protection
What is probate, and when is it necessary?
End of life planning is a challenging topic for anyone going through it. However, it is necessary for both the individual reaching that stage if they want to protect their assets and make their wishes known. This planning involves making decisions about what to do...
Be Careful Transferring Rental Real Estate To an LLC…
Many advisors advise their clients to transfer rental real estate to an LLC for asset protection. However, a recent case illustrates how such a transfer may surprise the client. In S and A Property Investment Services, LLC v. Pedro Garcia et a (Miami-Dad)County...
Recent Case Clarifies No TBE Protection for TBE Asset Transferred to a Joint Trust
In the recent bankruptcy case, In Re Gregory Todd Givans, the bankruptcy court confirmed that real estate held by a married couple as Tenants by the Entireties ("TBE") loses such protection as TBE when such real estate is transferred to a joint trust. Generally, under...
Is it possible to minimize the impact of estate taxes?
When planning your estate, you probably have questions about how best to provide for your family. Can you limit the time and costs of the probate process? How can you limit the impact that taxes have on your estate? Florida, unlike many other states, does not charge...
A Beneficiary Has an Interest in a Trust… Are Those Assets Included in a Divorce Equitable Settlement?
Many parents create trusts which benefit their children and grandchildren. Often, the trustee’s decision as to what to distribute to a child or grandchild is fully discretionary. Alternatively, the trustee can be directed o distribute for health, education,...
Court Gets It Right- Limited Liability Company (LLC) Member Protection Works!
Many of our clients created LLCs to protect their assets inside the LLC from lawsuits by creditors against our clients individually. Prior to 2010 it was generally understood that if an LLC member was sued by an outside creditor and obtained a judgement against that...
Child Support Claim Takes Precedence Over Interest in Special Needs Trust
In a recent Florida case, the court determined that, even though father is a beneficiary of a special needs trust which contains a spendthrift provision, and he is only entitled to trust assets for supplemental income while maintaining eligibility for federal...
New Nevada Supreme Court Case…Protection from Spousal and Child Support Obligations
We do not know what will happen in the future with our marriage, our children or any other facet of our lives. None of us PLAN on getting a divorce when marrying the love of our life, we do not PLAN paying child support when a child is not under our roof and certainly...
Are Assets Left to Your Child Via Your Trust Protected from Your Child’s IRS Tax Liens? It Depends…
As discussed in a prior blog, many individuals do not want creditors of their son or daughter to be able to access the benefits that they leave in trust for their son or daughter. Whether a creditor can “attach” a child’s interest in the trust property depends on how...
Is Your LLC Interest Protected From a Creditor?
A recent case illustrates the difference in the protection afforded debtors who own an interest in a Multi-Member Limited Liability Company (“ MMLLC”) versus an interest in a Single Member LLC (“SMLLC”). In Pansky v. Franklin & Associates, P.A. , a law firm...