Protect Assets Strategy

I was told by a financial adviser that for a non-profit organization it is not necessary to set up a trust to protect ones assets, which for us would consist of over three million dollars. That simply by saying in the minutes of the organization that particular funds are set aside for a particular project is sufficient.

And besides it worked before when we were sued and to set up and maintain a trust takes too much time, etc.

A properly maintained and run corporation should protect your personal assets from a lawsuit against the non-profit. That requires holding all meetings, maintaining minutes and making sure the officers, executives etc always act on behalf of the corp. However, should you have a personal lawsuit, your personal assets will be subject to a judgment against you. An irrevocable trust that holds your assets would probably be the best option to protect them. People are generally reluctant to transfer assets to an irrevocable trust because they think they’ll be relinquishing control. That is not always the case, nor should it be if you have competent legal and financial advice. That type of net worth is generally accumulated in 1 of 3 places. A business, an IRA or real estate. Keep in mind, there are different types of business entities that offer varying levels of protection. Specifically, an LLC in California, is protected from creditors against a personal judgment in a way regular corporations are not. Your financial advisor should know, understand and be able to distinguish between the pros and cons of corporate entities. An IRA is protected from creditors under the pension protection acts, so that shouldn’t be a concern. Other non-retirement accounts are not covered, and will require additional planning. If your home is your main or only asset, again, you can draft a personal residence trust, which can allow you the right to live in the house for life, with the beneficiary of your choice receiving the home when you and your wife pass. As for investment properties, see the discussion above on LLCs. Hope this helps. But I’d be concerned about your financial advisor’s simplistic answer to a complex problem.

I was told by a financial adviser that for a non-profit organization it is not necessary to set up a trust to protect ones assets, which for us would consist of over three million dollars. That simply by saying in the minutes of the organization that particular funds are set aside for a particular project is sufficient.

And besides it worked before when we were sued and to set up and maintain a trust takes too much time, etc.

A properly maintained and run corporation should protect your personal assets from a lawsuit against the non-profit. That requires holding all meetings, maintaining minutes and making sure the officers, executives etc always act on behalf of the corp. However, should you have a personal lawsuit, your personal assets will be subject to a judgment against you. An irrevocable trust that holds your assets would probably be the best option to protect them. People are generally reluctant to transfer assets to an irrevocable trust because they think they’ll be relinquishing control. That is not always the case, nor should it be if you have competent legal and financial advice. That type of net worth is generally accumulated in 1 of 3 places. A business, an IRA or real estate. Keep in mind, there are different types of business entities that offer varying levels of protection. Specifically, an LLC in California, is protected from creditors against a personal judgment in a way regular corporations are not. Your financial advisor should know, understand and be able to distinguish between the pros and cons of corporate entities. An IRA is protected from creditors under the pension protection acts, so that shouldn’t be a concern. Other non-retirement accounts are not covered, and will require additional planning. If your home is your main or only asset, again, you can draft a personal residence trust, which can allow you the right to live in the house for life, with the beneficiary of your choice receiving the home when you and your wife pass. As for investment properties, see the discussion above on LLCs. Hope this helps. But I’d be concerned about your financial advisor’s simplistic answer to a complex problem.

Thanks for those answering my question. I don’t really want to talk about the pre-nup with my fiancee, but I would like to know if there really isn’t any protection of the assets of my parents left me after they passed away if I have to divorce. In case a divorce really happen, and I don’t have a pre-nup, do I really have no protection of my parents’ assets at all?

I agree with the others…your state could differ on this point, but at least in Maryland, HE is not entitled to your inheritance in a divorce.

Thanks for those answering my question. I don’t really want to talk about the pre-nup with my fiancee, but I would like to know if there really isn’t any protection of the assets of my parents left me after they passed away if I have to divorce. In case a divorce really happen, and I don’t have a pre-nup, do I really have no protection of my parents’ assets at all?

I agree with the others…your state could differ on this point, but at least in Maryland, HE is not entitled to your inheritance in a divorce.

www.trustlaw.com – Michael Ettinger of the Ettinger Law Firm of New York discusses how to protect the ets of your estate.

Duration : 0:10:50

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Technorati Tags: 3, ettinger, law, Trust

www.trustlaw.com – Michael Ettinger of the Ettinger Law Firm of New York discusses how to protect the ets of your estate.

Duration : 0:10:50

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Technorati Tags: 3, ettinger, law, Trust

LegalFaces Directory
http://www.legalfaces.com/attorneys/wealth-strategies-counsel

Wealth Strategies Counsel
http://www.jrmatsen.com/

We are Orange County lawyers who set up and form corporations, limited liability companies and partnerships of all types and provide on-going business, tax and legal advice for these entities.

We are attorneys who provide estate planning services including the preparation of living trusts, other related estate planning documents, the administration of probate and the preparation of estate tax returns and documentation.

Please call us at (888) 392-6774

Duration : 0:0:37

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Technorati Tags: attorneys, business, California, corporations, creditors, domestic assets, estate planning, facesmedia, international law, legalfaces, living trusts, Offshore assets, orange county lawyers, probate, real estate buyers, trusts

Wealth Strategies Counsel
http://www.jrmatsen.com/

We are Orange County lawyers who set up and form corporations, limited liability companies and partnerships of all types and provide on-going business, tax and legal advice for these entities.

We are attorneys who provide estate planning services including the preparation of living trusts, other related estate planning documents, the administration of probate and the preparation of estate tax returns and documentation.

Please call us at (888) 392-6774

Duration : 0:2:28

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Technorati Tags: attorneys, business, California, corporations, creditors, domestic assets, estate planning, facesmedia, international law, legalfaces, living trusts, Offshore assets, orange county lawyers, probate, real estate buyers, trusts

DataDots are a state of the art identification and anti-theft security system applicable to most ets. The product consists of polyester substrate micro-dots, each the size of a grain of sand, onto which unique information is laser etched. These unique dots come pre-mixed in a UV based adhesive for ready application onto ets such as cars, motorcycles, snowmobiles, laptops and other electrical equipment, business ets, cell phones, tools, Powersports equipment, and other high value items.

Each kit manufactured by DataDot contains its own unique code for a given et. This may include a vehicle identification number, hull identification number, a computer generated PIN for personal and business ets, or the dot information may be fully customized. Each PIN is unique and cannot be manufactured again.

In essence, DataDots offer unique DNA for any et.

Duration : 0:1:39

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Technorati Tags: cool, datadots, gadgets, getitback, Products, security

DataDots are a state of the art identification and anti-theft security system applicable to most ets. The product consists of polyester substrate micro-dots, each the size of a grain of sand, onto which unique information is laser etched. These unique dots come pre-mixed in a UV based adhesive for ready application onto ets such as cars, motorcycles, snowmobiles, laptops and other electrical equipment, business ets, cell phones, tools, Powersports equipment, and other high value items.

Each kit manufactured by DataDot contains its own unique code for a given et. This may include a vehicle identification number, hull identification number, a computer generated PIN for personal and business ets, or the dot information may be fully customized. Each PIN is unique and cannot be manufactured again.

In essence, DataDots offer unique DNA for any et.

Duration : 0:1:39

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Technorati Tags: cool, datadots, gadgets, getitback, Products, security