This section of the Asset Protection Law Center updates you with the latest cases and rulings impacting the asset protection planning we have presented throughout the site. First is a summary of the key points, followed by a more detailed discussion as necessary. All or some of the following features will be appropriate based on the circumstances of your particular case. As you will see, the asset protection tool kit is broad and varied. Developments in the law and the evolution of public sentiment and legal strategies have greatly enhanced our choices and flexibility.
New Cases Give Direction to FLP Planning
Important legal issues have been raised in recent cases. Although FLP’s and LLC’s continue to provide excellent protection under the appropriate circumstances, most FLP and LLC agreements should be amended or revised now to account for recent law changes concerning ownership and control. FLP interests must be protected from creditors for effective asset protection. Legitimate third party involvement or ownership by an asset protection trust is now essential for the success of an FLP plan. For more details, Click Here.
New Case-Danger with Single Member LLC
A creditor is not limited to a charging order against an interest in a single member LLC. Although it is convenient for tax purposes- it may not provide the asset protection you desire. In those cases where a single member LLC is necessary for tax considerations, full asset protection can be maintained by properly structuring the ownership of the company. For more details, Click Here.
Significant New Estate Taxes
The estate tax is scheduled to fade out until 2010 then come back in full. Estate tax planning should be appropriate for this uncertainty. (Don’t make a big bet on the wrong side.) For more details, Click Here.
Use Caution with FLP for Tax Savings
Your FLP can create significant estate tax reduction but new cases illustrate the need for careful planning. For more details,
New Trusts for High Quality Asset Protection
Changes in the law and advances in technique create the opportunity to achieve full asset protection and excellent privacy. A trust can be created with special protection for each of your assets-with minimal maintenance and maximum flexibility. This is a convenient and sophisticated technique providing equal or greater protection than many more elaborate plans. For more details, Click Here.
Tax Problems if the Family Residence is Owned by an FLP
A new ruling by the IRS denies tax advantages for a residence held by a Family Limited Partnership. The same would be true with an LLC. If you have been told to put everything you own in an FLP, you risk losing your mortgage interest deduction and the exclusion of gain on sale. Use a trust designed to accomplish asset protection while preserving the crucial tax benefits.