On Fri, 2 Jun 2006 07:05:23 -0500, "Market Theory"
<qemist[at]yahoo.co.uk> wrote:


- quote -

Estate planning questions fall under the broad umbrella of financial
planning and are appropriate on this newsgroup. There are, of course,
certain estate planning functions that require an attorney - for
example, the creation of advanced directives - but a broad array of
financial people can and do advise on general estate planning.


-HW "Skip" Weldon
Columbia, SC

me[at]privacy.net wrote:
[snip]

Your question is basically a legal question, not a financial planning
question. You should post it to a legal newsgroup.

IANAL, but AFAIK, if you're wealthy, solvent, not currently in any
legal dispute, acting in good faith etc, then lawyers can build a
structure for you which is well nigh impregnable if things turn sticky
years down the track. If you're on the verge of bankruptcy, keeping the
curtains closed and not answering the door for fear of process servers
etc, then fat chance.

You seem reluctant to provide any information about your circumstances,
so I guess they more closely fit the second situation than the first.
Do you have any friends or relatives overseas you could stay with? The
cost of living is quite low in Costa Rica, I'm told.

cheers,
--mt.

In thinking about your asset protection plan, you have to think about
your current creditors and how your assets are currently held and
insured and balance those against costs for restructuring your plan.

State and federal law provide some restrictions on transfers when one
is insolvent (i.e., they cannot pay their bills or their debts exceed
their assets). Moreover, the state and federal laws provide a look
back period -- for determining if a transfer is fraudulent and thus
voidable. So if you have current creditors then you have to be very
wary of making any transferrs that are not for full and adequate
consideration.

If that is not a problem for you, then you look at your individual risk
factors and you isolate them to the best of your ability. You isolate
risk by either insuring it or wrapping the risk up in a legal entity.
The next step is to take your assets an wrap them up in less structures
that are less likely to be subject to a charging order (such as certain
retirement accounts, retitling ownership of property, trusts, business
entities, etc.).

There are a lot of details that I skipped over here, but that is
basically it. I am sure your attorney and/or financial advisor will
walk you through these issues.

Best of luck.



Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanicsofMoney.com/blog.php

"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.comwrote:

- quote -

I think its called irrevocable trust?

- quote -

Now

While living

"John" <john.corey[at]gmail.com> wrote:

- quote -

Understand above

Poor choice of words in my original post

However....is there ant sure fire way to protect any
and all assets from potential creditors

Please....don't pass any judgment on that statement.
I'm just seeking knowledge here. Theoretical knowledge

And I do have attorney appt but it's a few weeks away

"Mechanics of Money Financial BBS"
<bbs[at]mechanicsofmoney.com> wrote:

- quote -

Understand on the will. Using that was a poor choice
of words.

My goal is to PROTECT any and all assets from any
creditor.

That "may" not be doable..... but the question stands

- quote -

Will do

On Wed, 17 May 2006 16:20:01 -0500, me[at]privacy.net wrote:


- quote -

You need to give us more specificity.

1. By "pers trust" are you referring to a Revocable Living Trust (one
that is established while you are alive and overwhich you exercise
control)? If you mean something else, please be specific.

2. As for protection, do you mean now or post-death? And from whom
(or what) are you seeking protection?


-HW "Skip" Weldon
Columbia, SC

me[at]privacy.net wrote:

- quote -

Your logic is mostly incorrect.

There are different forms of trusts. You need legal advice from an
attorney that handles estate planning. A tax attorney would be my
suggestion as they have specialized training.

A trust does have some benefits re: liability as the assets are not
owned by you they are owned by the trust. So the separation does help
slightly.

A will tells the estate and court what to do with the assets. It is
your statement about what should happen if the executor can and will
follow the instructions.

If a person dies with the assets owned by a trust the owner of the
assets did not die. Hence the trust can continue and the assets can be
managed without the need to probate the assets. This provides privacy
and a possible savings in terms of probate costs and taxes.

One reason that people think a personal (living?) trust will better
protect ones assets is from the fact that the assets might be less
obvious to a public search. If the trust is called Blue and that is not
your name a lawyer thinking of suing you may not notice when they are
doing a quick search to see what you are worth. Contingency fee lawyers
are not going to launch a suit if they sense that they will never get
paid. Trusts are commonly used by RE investors to gain such privacy.

To simplify things let me end this way.

A will is a set of instructions for when you are not there ("do this
after I am gone"). There is no change of ownership in who owns the
assets when the will is created. Wills are not binding - they are a
request to the executor. The executor has to use judgment if there is a
problem with following the instructions.

A trust is a way to change the ownership to a collection of assets. To
do it in the present. What the trust does with the assets can be
detailed in the trust. A trust does not die when the person who
benefits or created the trust dies.

Probate is a legal process to transfer assets and settle account for a
person who has died and therefore can not sign transfer papers. You can
not transfer RE without a signature or a court order (probate).

John B. Corey Jr.
Chelsea Private Equity, LLC
+1 (503) 906 7840 x1108
+1 (503) 210 0227 (efax)
john.corey[at]ChelseaPrivateEquity.com

Looking for hard money for your latest real estate deal?
Visit www.ChelseaPrivateEquity.com

Trusts may or may not protect your trust assets. If you create a trust
during your lifetime for your benefit, then it will be a "self-settled"
trust. Some states afford absolutely no asset protection to
"self-settled" trusts (some states do, such as Colorado or Nevada,
etc.). You can create a trust in your will (i.e., a testamentary
trust) or you can create a living trust.

A will is not intended to provide asset protection features, it merely
distributes assets (with the exeption of a trust created under a will).


Many people opt to create a living trust and a will. Anyway, you will
probably need to talk to an attorney.


Best of luck.


Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanicsofMoney.com/blog.php

Anyone have a personal trust instead of will?

I'm taking day off after memorial Day to get my will
updated.

Been thinking abt starting a pers trust instead.

Anyone have one?

Is my logic correct in that a pers trust protects your
assets better?