All Forum Posts by: Brian Bradley

@Jessie Griffin check the legal form section on BP to see what they have for you since you are a pro level. If you want to not use a lawyer and be a google lawyer I am sure they will have much better quality then what you can make on your own and or what you would get from legal zoom. If you don't do it correctly on your own like then just be careful like @Sammy G. said, then things can go wrong since you went wrong. 

@Jessie Griffin never use legal zoom for anything. Just get it done correct. Have your lawyer draw up the proper paperwork. A good lawyer will not charge very much for that and will even transfer it properly for you. A good performing note will realistically not have the due on sale clause called. Banks are not in the business of rocking the boat on performing notes and get that you are transferring it into your LLC or business for AP purposes and you own the company. It's essentially like transferring a property into a trust. I do not know of a single case or lawyer who can think of or found where a bank has called the due on sale clause on a performing note for transferring the property into your business. They are not stupid. NEVER use general legal zoom forms unless you want things done wrong and in poor quality, talk to your CPA and Lawyer to get it done properly. Thats why you have your team and why your CPA and Lawyer are your go to guys. Just find good ones.

@Jay Hinrichs I get the move. Summerline in NV? I am originally from Lake Tahoe NV side. I get the move. Thank's for the complement. 

@Jay Hinrichs It's way more in-depth than most on this will want to read. It’s a different question for each individual person. Not boilerplate check the box copy and do this. And this is not legal advice. Just opinion.

First, Asset Protection is NOT about tax avoidance or reduction. Any asset protection plan has to be tax neutral on its face to hold up in court and be seen as fraudulent. If any lawyer or CPA says otherwise walk out. Then the rest really depends on your overall net worth and assets which I would not want to know on this forum.

Oregon is unfortunately one of the very few remaining states that has a death tax / inheritance tax. Despite the federal death tax increases in 2000 from $675k per couple to $5,45M per couple. So the modern estate tax impacts less than two-tenths of 1 percent (0.02%) of American’s, but if we live in Oregon, it’s based on the total value of the estate set at $1M.

One simple planning devise most do in their estate plans is to combine the estate tax exemption for each spouse in a trust (called an A/B trust). This preserves the estate tax credit and passes it along to the surviving spouse so when the surviving spouse dies, the children could use both parents estate tax credits in the same estate. But, Oregon still requires the payment of the surviving B estate side. So not much help. And if you are not one of the (0.02%ers) and living in Oregon, your not effected so the AB Trust is outdated anyways.

Other methods are combinations of Bypass Trusts, charitable Remainder Trusts and Charitable Lead Trusts, etc. Talk to your CPA and lawyer about those. Other combinations and options exists.

Theirs lots of estate planning ways to reduce the amount of estate tax or inheritance, which would go hand in hand with an good AP Plan. It might take a few different trusts to separate out different assets etc and separate out control and different triggers. The IRS website actually has good articles on different AP Trusts to use for such issues. The IRS is not there to screw you. You just need to ask the correct Attorney and CPA the correct questions. 

@Thomas S. the protection LLC's offer is legal and demonstrated by courts rulings. Hence why when you have a LLC and you are sued and the courts stop the liability at the company, and not the person or their other personal assets, Hence, limited personal liability. It is both psychological AND legal protection, so long as it is set up properly and maintained properly.

@Jay Hinrichs many types of trust and estate planning exist for AP it all depends on the goals of the person and the size of their assets etc. Land Trust, Living Trust, Revocable, Irrevocable, Foreign Trusts, etc etc, the general basic of it is using a self serving spend thrift trust with asset protection provisions in the trust. Its the staple of any estate planning transferring property out of your own personal name and into your trust, then you just add the layers of the LLC and Asset Management Companies depending how many properties and how many layers / degrees of separation you want. But you are just using estate planning and LLC's to work in the modern era to fight modern wealth destruction (law suits/judgments, healthcare expenses leading to long term care / incapacity, remarriage after death, death or remarriage of children.)

This is what AP is for and helps protect against. 

@Jeff Bisgier insurance and an umbrella policy will not help you if you are sued. read the fine print. Do insurance companies make money by paying out claims? No. They make money by taking premiums and then challenging claims and partial payments. Even umbrella policies. Basic Business. Otherwise they would not be in business. The point of AP and LLCs is to limit your personal exposure and liability if you were sue. Any AP plan would be tiered and create multiple hurdles. Insurance, as much as you can afford, LLC and a Trust. The key really is the Trust connected to the LLC.

You want nothing in your name. Investors and rich people do not own anything they control it by having it in LLCs and Trusts. They then just get all the benefits of it. Then if some crazy event happens or lawsuit and judgment, you have many hurdles for the plaintiff and lawyer to jump through, and when their lawyers sees their is no money at the end of the road to collect on, then they wont take the case since they won't get paid. That's the point of AP. To let you sleep better. 

Replying only on insurance is foolish and misguided. Just think business 101. 

@Steve B. good for pointing it out to make sure its clarified. When somebody ask me questions on any forum its general. I then follow up with them personally for a full detailed analysis which if they want which is not the place on a public forum. Any attorney they talk to and CPA should / would advise them on how to set it up. 

@Steve B.do you need to understand how setting up an LLC works. You must elect when you set it up how you want to be taxed. Have your lawyer and CPA do this for you. YES, LLC then you must CHOOSE how to be taxed when you set it up. If you do not, then you have an LLC that then will have pass through tax and not be set up very properly. Hence why you have CPAs and lawyers BEFORE you do anything.

@Steve B. The IRS allows the LLC to be taxed as a corporation, partnership or sole proprietor, depending on elections made by the LLC and the number of members. Elect to be an S-Corp for taxes. Just saying! 

hence lower tax rate vs not having one. Go do a simple basic search on tax benefits and rates of LLC and if you elect to be taxed as an S-Corp their you go @Steve B. and no self-employment tax rate now for not being incorporated. Just sayin Steve. Yes you do get lower tax rate for LLC electing to be taxed as an S-corp and then not paying all the self-employed taxes. Talk to your CPA and lawyer.