Present Value Defense To Fraudulent Transfer Allegations

Jon Alper Fraudulent Transfers

A profitable business corporation faced imminent civil judgment. The principal owner of the company owned additional corporations engaged in a related business. The owner hired an attorney to represent the primary business and the related business. The owner hired the attorney to do legal work for the other, related business that were not involved in civil litigation. The owner paid …

LLC Charging Liens Applicability To Withdrawal of Capital Contributions

Jon Alper Uncategorized

LLCs are useful asset protection tools because Florida law limits a creditor’s  remedy to a charging lien on distributions to LLC members. One of my clients was relocating to Ohio and asked if he would get the same LLC asset protection after he became an Ohio resident owning a Florida LLC. I explained that the collection and asset protection laws …

Florida Court’s Garnishment of Account At Extraterritorial Bank

Jon Alper Writ Of Garnishment

Judgment debtors may want to open bank accounts at banks located exclusively outside of Florida in order to deter garnishment of their bank accounts after a judgment is entered. It is more expensive and time consuming for a creditor to transfer its Florida judgment to another state so that the foreign state’s court issue a writ of garnishment against accounts …

Fraudulent Transfer Statute Of Limitations Extended In Bankruptcy If Debtor Has IRS Debt

Jon Alper Fraudulent Transfers

A recent decision  by Bankruptcy Judge Robert A. Mark of the US Bankruptcy Court for the Southern District of Florida has created a potential nightmare and morass for those who seek to use asset protection vehicles as part of an overall estate plan or independently, and, at the same time, has created a new opportunity for creditors seeking to recover …

Business Owner’s Personal Liability For Business’s Violation of Import and Custom Rules

Jon Alper Florida Asset Protection Planning

U.S. government creditors is more difficult because there are several federal laws that provide the government stronger collection remedies or laws that make it easier for the government to hold business owners liable for debts or transgressions of their business entities. An example is a client this month who was facing personal liability for customs duties owed by his importing …

Change Financial Firms To Cure Defective Tenants by Entireties Registration

Jon Alper Fraudulent Transfers

One this week’s clients made a mistake when he opened a financial account. On the account application he checked the ownership title box labeled “jtwros” ( joint tenants with rights of survivorship) when two below there was another box labeled “tenants by the entireties”. Florida law presumes a jtwros account is a T by E account and that the property …

Proposed IRS Regulations Will Affect Asset Protection Planning With Family Limited Partnership

Jon Alper Limited Partnerships and LLC

The IRS has issued regulations concerning the estate planning benefits of family partnership. These regulations can affect asset protection planning because they reduce the effectiveness of estate planning rationale for transfers of non-exempt assets in to family partnerships. The IRS proposed regulations were discussed in an article in the Wall Street Journal. Limited partnerships can be used for asset protection …

Employee Stock Purchase Plans Are Not Exempt Assets

Jon Alper Audio, Florida Exemptions, Gallery, Image, Link, Quote, Standard

A client asked me during a consultation whether his employee stock purchase plan was an exempt (“ESSP”)  asset.  The client’s ESSP was provided by his employer. The employer is a publically traded company. The ESSP plans provides employees the opportunity to purchase employer stock at a ten percent discount to current market value.  The employee pays tax on the benefit …

Unreasonably Liberal Loan To Owner May Be A Fraudulent Transfer

Jon Alper Uncategorized

A business owner wants to protect the business’s assets, mostly cash, from a creditor that is suing the business. He wants to transfer the business’s cash to himself, the owner, but is concerned that the transfer may look like a fraudulent conveyance from the business to himself. So, he has the business loan him the cash and he executes a …