| |
|
Article Directory :: Finance & Investment Articles
In most cases, when an individual who creates and transfer assets to a Trust (the maker or "Settlor" of the Trust), is also a beneficiary of that Trust, the Trust provisions will not protect the Settlor/beneficiary's creditors from reaching the assets of the Trust. On the other hand, the law of many foreign jurisdictions provides that when a Settlor transfers assets to an Offshore Asset Protection Trust that Trust can protect the assets of the Trust even though the Trustor is a beneficiary of the Trust.
In the late 1990s, several states began to reverse the general rule concerning self settled Spend Thrift Trusts and statutorily modified their laws accordingly. Delaware and Alaska along with Nevada are among the 11 states that have adopted such legislation. The Nevada legislation was enacted in 1999 and allows the Settlor or creator of the Trust to protect the assets of the Trust from outside creditors even though the Trustor is a beneficiary of the Trust.
This legislation is extremely important and critical to Asset Protect Planning. For many people, the typical revocable living trust that they have set up in California or elsewhere provides zero protection against the creditors of the Settlors of the Trust whether they have a claim arising prior to the establishment of the Trust or after its set up.
Under the relevant provisions of the Nevada law, at least one Trustee must be a Nevada resident. Wealth Strategies Counsel recommends that a Trust company organized under the laws of Nevada be the Trustee of the Nevada Asset Protection Trust. The major advantage of the Nevada laws is the shorter period of time required for protection between the date an asset is transferred to the Trust and the date the protection begins from the creditors of the Trustor. The Nevada statute of limitation is only two years where as the other principal states have a much longer statute of limitations.
Again, it should be emphasized that only a minority of states permit self settled Asset Protection Trusts. The benefits of using the Nevada Asset Protection Trust are obvious not only from the standpoint of high net worth individuals who want to protect their large property holdings, but also for many younger people who are in the process of building their estate and who face high liability exposure such as doctors, lawyers, other professionals and many other type of business owners and executives.
One of the best ways to utilize the Nevada Asset Protection Trust is to create a modular structure combining the Nevada Asset Protection Trust with a limited liability company ("LLC"). Basically, the member interest of the owner of the LLC is transferred to the Nevada Asset Protection Trust which holds the interest, more or less, as a custodian. For example, a husband or wife can be the Settlor of the Nevada Asset Protection Trust. LLCs can then be set up to hold real property and other assets and the member interests of the LLCs can be transferred to the Nevada Asset Protection Trust. It is recommended that a third party own at least 5% of the LLC because the efficacy of the Charging Order remedy limitation of creditors of the LLC is greatly reduced and even eliminated when the LLC is a single member LLC.
Jeffrey R. Matsen helps his clients structure their business and personal assets the best way possible to preserve, protect and transfer them in the most efficient and tax saving manner. For further information go to => http://www.wealthstrategiescounsel.com
 EasyPublish™ this article - publishers click here
More articles by Jeffrey Matsen
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More finance articles: - Hard Money Lenders - Hard Money Loans (Louis Jeffries)
Real Estate Investors choose to use hard money loans as a source to purchase and rehab property to make a substantial profit that they may not have without the use of this expensive money. - Top Ten Reasons Why You Should Buy Multifamily Properties (Lance Edwards)
When you sit down and examine the advantage of owning multifamily properties, you will be amazed at the multitude of benefits. While other avenues of income generation offer some attractive incentives, owning multifamily properties brings many great things to the table. Let us explore these advantages: - 3 Types of Investors for your Multifamily Deals (Lance Edwards)
The word "investor" is quite a general term that means different things to different people. Dictionary.com defines an investor as "someone who commits capital in order to gain financial returns". So what does this mean in terms of real estate investing? There are three types of investors: lending, equity and hybrid (or combination). Here is a breakdown of these three types of investors. - What a Multifamily Property's Class Can Tell You (Lance Edwards)
When you are dealing with multifamily apartment properties, it is very important to understand the different classes of properties. The class that a property is assigned can tell you a lot about the property and if it is worth your time and money to invest in. There are four different property classes: A, B, C, and D. - 5-Step Process to Financial Freedom Through Real Estate Investing (Lance Edwards)
You have learned how to create a real estate business. But at the same time, you want to create your net worth. The steps to getting this done are a 5-step process. Not only can you apply this process to your business, but you can apply it to your personal life. - Is Buy and Hold Dead? (Jack Funderburk)
According to Jim Bianco (9/14/2009) (BiancoResearch.com), the Dow has closed above the 10,000 level 1,859 times since 1999. If one had put their money in a short-term Treasury bill the first time the Dow pushed above 10,000 and simply rolled over the proceeds of the bill at each maturity (and the interest), one would have a better return on their investment today, without any market risk. - How to Find a Lucrative Home Business (Stacy O'Quinn)
A lot of people are running very lucrative home-based businesses these days. Thanks to the proliferation of technology and the widespread use of the Internet, there are an amazing number of niches to be found, none of which require much investment or staffing. The criteria for evaluating opportunities could be the same regardless of what kind of business you have in mind. - Home Budgets Can Be Thrown Off by Both the Expected and the Unexpected (Ozeme J Bonnette)
If there is one thing that can cause tremendous damage to our finances, it would have to be irregular expenses. These are expenses that do not happen every pay period or every month, but often come up at some point during the year. We will review a couple of the more popular irregular expenses. - Guaranteed Online Personal Loan Types (Mark Inglis)
A description of the type of lans avaliable withing the UK. - Small Business Association Quarterly Report on Small Business Creates Factoring Surge (Kristin Gabriel)
Kristin Gabriel is a social media marketing professional who works with The Interface Financial Group (IFG), North America's largest alternative funding source for small business. The company provides short-term financial resources including invoice factoring, accounting, finance, law, marketing and banking.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
