My Trust posts seem to get noticed. Asset protection is so important, we have 22 places in 4 states. I've reorganized a bit to improve asset protection and simplify. I've also had a couple of my "set ups" tested.
Our properties are now owned by a LIOT (Lifetime Income Only Trust) aka a medicaid trust. We amended our trust from a WQST. These Irrevocable Trusts have been tested by the government and proven solid. I consider the gov a super creditor, they come after you with unlimited funds, yours! With only 1 WY LLC as trustee, a private family trust co anything purchased for a property owned by a trust it's trustee for or a beneficiary of the trust is a legit expenditure. Tough to co-mingle and blow asset protection as could be done with a LLC. So simple to maintain. We do have a NM LLC as trustee of the trust that owns the CA property. It really isn't necessary but help me keep things straight.
My mom has Alzheimers I had her set up in a house a block from the beach in Melaque Mexico. I hired a young couple to live with her, cook, clean make sure she takes meds, walk her to ballroom dance club wed and fri, to the chicken beach to swim, to the little home made ice cream shop ... all good until covid. She thought she was being held prisoner, cops there, attacking care givers very bad. I have custody of a disabled grandson who'd just had spinal fusion neck to bum. We found a place in Guadalajara. Looking into moving her back to USA went thru process and she qualifies for medicaid for a home here. I have control of her LIOT which owns 4 places in 2 states. Test 1 passed. She's still in Guadalajara Dr said not to move her she is settled in and change is hard for Alzheimers patients.
Test 2 a dog on a rental property broke thru the screen to get the door dash driver. I did get a lawyer letter. Responded. No lawsuit filed. The house is owned by a LIOT and a WY LLC is trustee, which is a deterrence to lawyers as it's a federal case (trustee in WY, house in NM) and LIOT house can not be attached. Would I have been sued if I owned the house? No way to be sure.
Evan Farr is a elder law lawyer. He has online classes for lawyers I attend. I also have a lawyer school book "Asset protection strategies and forms" by Dustin Nichols and Mark Ziebold. I have tweaked our Trusts. When we die our son becomes manager of the LLC and trustee of the trusts, he can do whatever, no probate needed. I'm checking out https://platinumtrustgroup.com seems too good to be true. However I got all the IRS books and read them and I'll be damned it is true,
Internal Revenue TITLE 26, Subtitle A, CHAPTER 1, Subchapter J, PART I, Subpart A, Sec 643 (a)(3),(4),(7) and (b) states: “(3) Capital gains and losses. Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus
I'm still researching but it looks like a legal way to defer taxes. We haven't had a big fed tax bill because of depreciation and other deductible expenses until now, our income is...
I love real estate and Trust law!