Steven Sears Attorney - Asset Protection, Estate Planning
Online, February 6, 2010 (Newswire.com) - Steven Sears Attorney And CPA And More : Aggressive asset protection, particularly lawsuit protection, involves the use of offshore entities. Certain foreign jurisdictions do not recognize the judgments of US Courts. To reach assets held offshore it may be necessary for the creditor to retry the claim in the foreign jurisdiction. This would require hiring local attorneys and have witnesses, exhibits and other evidence be presented in the foreign court. The costs associated with such an action may deter a creditor from pursuing the debtor further.
Steven Sears
There can also be lawsuits against individuals in the LLC. A creditor can make a charge against an individual which means they are charging against the income, they will try to step in and take part of the income distribution- No distributions can be done. The tax flows through to the judgment creditor on the form K-1. This can flow to the creditor that will be stuck with a tax liability but no income- no asset to pay the liability. Similar situations can be done with trusts with sprinkling powers. The right to income is contingent upon the trustees choosing upon a distribution. So now we have achieved the estate planning, planning objective, asset protection and everything goes into the LLC entity.
Steven Sears Professional Building For example, if you have property, cash and investments worth $2 million and you also have a life insurance policy that will pay your children $ 1 million. What happened is upon your death, the Internal Revenue Service will include the amount of one million in your Federal Estate Tax return.
Steven Sears Attorney And CPA If you would like to meet to discuss these matters in more detail, please give us a call. We will be happy to discuss the best plan to accomplish these very important objectives.
Steven Sears Attorney And CPA Our principal, Steven Sears, has a Bachelors Degree in Business Administration, a Masters Degree in Tax Accounting, and a Law Degree. Mr. Sears is also a licensed CPA and has a successful practice as a tax attorney in Orange County, California. He is a featured speaker at frequent seminars, and has been interviewed on television and radio numerous times. Mr. Sears has published articles in professional tax planning and tax preparation journals and also lectures in tax law.
Steven Sears Professional Building If you would like to meet to discuss these matters in more detail, please give us a call. We will be happy to discuss the best plan to accomplish these very important objectives.