529 Plans are named under the section of the IRS code that creates and regulates them. These plans provide for a way for a parent or grandparent to invest and save for a child’s education.
I recently saw a question concerning a parent who wanted to give money to a child, but where the child had judgment creditors due to the child’s failed business. The parent wanted suggestions how to give money to help the child without the gift being seized by the child’s creditors.
An Utah man will spend 10 years in federal prison for scamming more than 50 investors out of nearly 15 million dollars. Kirk Koskella was sentenced earlier this month in Utah for his role in setting up honey “offshore trusts” in the 90’s to reduce tax liability for investors in several states. Koskella is the first of eight people charged …
Another article about doctors dropping malpractice insurance in today’s (March 23, 2004) Wall Street Journal in the Personal Business Section. Article says doctors are trying to get patients to waive their right to file “frivolous lawsuits”. Also, physicians have threatened to file counter-claims against any patient who files lawsuit against them in order to intimidate patient and to delay the …
It is possible to successfully defend allegations that you fraudulently transferred assets to avoid creditors. Take the case, for example, of Thomas J. Meyer who filed bankruptcy in Illinois.
In May, 2003, The Eleventh Circuit Court of Appeals certified to the Florida Supreme Court the question of whether under Florida’s Uniform Fraudulent Transfer Act or FUFTA there is a cause of action for aiding and abetting a fraudulent transfer when the alleged aider-abettor is not a transferee. The Supreme Court’s unanimous answer in Lewis B. Freemen, etc., et al., …
In December, 2003, Newsweek Magazine ran a cover story on the lawsuit epidemic in the United States. The fear of lawsuits demonstrated in this article underlines the need for asset protection planning. The following is a quote from the introduction in this article.
Offshore trust planning is a highly-publicized method of asset protection. Offshore planning involves establishing legal entities in favorable foreign jurisdictions under the control of trustees who are neither United States citizens nor persons having a business presence in the United States.
Florida limited liability companies (LLC) are a popular tool in business planning. Many lawyers use the LLC as an alternative to the Subchapter S corporation as the preferred legal entity for new businesses.
Asset protection is a process of insulating your estate assets against attack by creditors and plaintiff’s attorneys.