How much did the recent recession actually cost? A fascinating article by Eduardo Porter in yesterday’s New York Times provides some startling information about the cost of the recession. Three economists at the Federal Reserve Bank of Dallas have estimated that at a bare minimum, the crisis cost nearly $20,000 for each American. Adding in
Basic Exemption Planning Should Come First
There are many asset protection alternatives. These include offshore trusts, domestic asset protection trusts (called Ohio Legacy Trusts in Ohio), irrevocable life insurance trusts and limited liability companies. But relatively simple exemption planning should always be the initial focus. Exempt assets (those which applicable laws already make it difficult or impossible for creditors to reach)
Asset Protection Trust Should Have Provision Allowing Trustee to Change Situs
Earlier this year Ohio joined a number of other states that allow creation of a domestic asset protection trust. In Ohio, it is called an Ohio Legacy Trust.
Ohio law (just like the law of every other state) can change at any time. We currently anticipate no significant change in the new Ohio domestic asset
Consider Separate Entities for Your Business
All of the assets relating to your business operation do not necessarily have to be in the same company. There may be perfectly valid business reasons to have real estate, equipment and/or other assets in separate entities. The following chart provides an example of a possible business structure.
Many assets in the above structure are
Trusts Require Flexibility
Asset protection planning (and estate planning) frequently involves the use of one or more trusts. Possibilities include an offshore trust, Domestic Asset Protection Trust, irrevocable life insurance trust and various other kinds of trusts.
Most of these trusts are designed to last for many years. It is therefore important to give the trustee the flexibility to adjust
Who Needs an Ohio Legacy Trust?
Here are some of the people who should at least consider setting up an Ohio Legacy Trust:
- Business owners
- CEOs and Directors
- Physicians
- Accountants
- Attorneys
- People considering marriage
- Others who are willing to part with total control of a portion of their assets
The following chart (prepared by my partner, Paul Fidler) provides some general
Information About Ohio Legacy Trusts
The link below provides some general information about Ohio legacy trusts. The material is from a presentation given by my firm on March 26, 2013 (the day before the Ohio Legacy Trust Statute took effect).
www.ssrl.com/attachments/download/106/Ohio%20Asset%20Management%20Modernization%20Act.pdf
This new kind of trust is not for everyone. But for some Ohio residents, it could be a valuable way to
Do Not Rely on an LLC to Protect Your Home
Ohio House Bill 479 Protects 529 Plans
Ohio House Bill 479, signed by the Governor on December 20, 2012 and effective in March of 2013, has a provision that specifically protects contributions to 529 plans.
A new provision was added to Section 2329.66 of the Ohio Revised Code to protect contributions to a so-called 529 plan. Funds held in such a plan
Annual Federal Gift Tax Exclusion is Now $14,000 per Donee
As of January 1, 2013, the annual federal gift tax exclusion has changed to $14,000 per donee. This means that during 2013 you can give up to $14,000 per donee without filing a federal gift tax return. So, for example, if you have three children – – you can give each of them $14,000 without