If you and your spouse (or you and anyone else) have a joint credit card account, then both of you are fully liable for all the credit card debt. Many couples open a joint account for convenience. But keep in mind that if your spouse or partner runs up a huge credit card bill, you
Pet Trusts
Pet trusts are becoming more and more common. As noted on the ASPCA website, a pet trust is a legally sanctioned arrangement that provides for the care and maintenance of one or more pets in the event of their owner’s disability or death. As also noted by the ASPCA, such a trust may take
Florida is Still a Debtor Friendly State for Asset Protection
The Florida Supreme Court recently ruled that a charging order is not the only remedy for creditors of LLC owners. My blog post of August 2, 2010 outlines the Florida Supreme Court decision. While the decision applied to a single member LLC, it could apply to multi-member Florida LLC’s as well. For the time being, Florida LLC owners
Parents Should Always Consider a Trust for Children
Trusts are not only for the rich. Anyone with minor children (and even children in their 20’s) should consider a trust for their family.
If any property passes to a child under your will, from a bank account "payable on death" or otherwise, the child will generally get all of that money at age 18. The
“Homestead Exemptions” are Receiving Increasing Attention
An article by Kate Murphy in the September 2, 2010 New York Times provides a good discussion of homestead exemptions.
"Homestead exemption" can have two completely different applications. Some states and localities use that term to refer to real estate tax breaks for senior citizens and others. The term can also refer to the extent
Texas Billionaire Fights S.E.C. Allegations Regarding Offshore Trusts
The United States Securities and Exchange Commission recently filed suit against two Texas brothers (Sam and Charles Wyly) alleging an elaborate securities sham to fraudulently sell offshore assets. Sam Wyly is on the Forbes list of billionaires. According to a front page article by David Segal in the August 23, 2010 New York Times
Domestic Asset Protection Trust Versus Offshore Asset Protection Trust
Alaska was the first state in the United States to pass a domestic asset protection trust statute. Prior to 1997, this type of protection could only be obtained in offshore jurisdictions such as the Isle of Man. A number of other states — including Delaware — have subsequently enacted similar statutes. There is now an ongoing
Florida Supreme Court Limits Protection for Single Member LLC’s
It has generally been assumed that when a creditor of an LLC member gets a judgment against that member, the only thing the creditor can do is to get a so-called "charging order". Such an order does not give the creditor control of the LLC — just a right to receive distributions if and when
Surrendering Some Control of Your Assets Required for Asset Protection Trust
Any trust that can help protect your assets from creditors requires that you surrender at least some control over those assets. This goes for an offshore trust; a so-called "domestic asset protection trust"; an irrevocable life insurance trust; and any other trust that gives you creditor protection. If you think about it, this is just common sense. If
More and More Affluent Americans Facing Creditor Problems
The recent economic downturn has caused creditor problems for many wealthy Americans who never dreamed they would be in this kind of situation. A front page article in the July 9, 2010 New York Times reported that one in seven homeowners with loans in excess of $1 million is seriously delinquent. Foreclosures are occurring at shocking rates