Does a Roth IRA provide better creditor protection than a traditional IRA? The answer is yes. This is because with a traditional IRA, you have to begin taking mandatory required distributions (MRD’s) starting in the year you reach age 70 1/2. These distributions can become a potential target for creditors. You are not required to
Trusts Designed for Probate Avoidance May Provide No Asset Protection
“Avoiding probate” has become almost an obsession with many Americans. In some states, this can be a good idea, to the extent reasonably possible. But “probate avoidance” is usually not my biggest concern for a client.
It is very important to remember that a trust designed to avoid probate may provide absolutely no asset protection. A so-called revocable grantor
Lawsuit Lending
Believe it or not — banks, hedge funds and private investors are now funding lawsuits. They are pumping staggering amounts of money into medical malpractice claims, class actions against companies, and even divorce fights! According to a front page New York Times article by Binyamin Appelbaum, total investments in lawsuits at any given time now
Nevis Is A Good Choice For An Offshore LLC
In the United States, forming an LLC in a particular state (such as Delaware) can provide significantly better asset protection advantages than forming that LLC in certain other states. The same holds true for offshore LLCs. Nevis is currently one of the best offshore jurisdictions for a limited liability company.
Forming a limited liability company
Multi Member LLCs After Olmstead
I have discussed the Florida Supreme Court’s decision in Olmstead in other posts on December 20, 2010, September 22, 2010 and August 2, 2010. In addition to severely weakening the asset protection advantage of a single member LLC in Florida, the decision unfortunately calls into question the effectiveness of multi-member LLCs in that
Olmstead Decision Does Not Make All Single Member LLCs Useless
On June 24, 2010, the Florida Supreme Court ruled in Olmstead v. Federal Trade Commission that a charging order is not the exclusive remedy for a judgment creditor against a debtor’s single member LLC interest. This means that in Florida, a judgment creditor can essentially seize a debtor’s single member LLC interest and gain full
Business Owners Can Inadvertently Become Personally Liable for Company Credit Cards
If you own a business through a corporation or limited liability company, you should not be personally liable for the company debts. That is one of the reasons you set up a corporation or a limited liability company in the first place. It is a different story if you sign a personal guaranty for a bank loan or
Personal Credit Cards Often Overlooked In Asset Protection Planning
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