SearsAtTy.com is Steven Sears Attorney and CPA
Steven Sears Attorney And CPA Tax Plannig : Typically, we transfer all or most of your personal and business assets into this partnership. The family house, bank or brokerage accounts, and other real estate investments will be transferred into the partnership.
Steven Sears Attorney Estate Planning The estate tax can be a penalty for poor estate planning. In many cases, the fees can amount to over 1 million dollars which comes out of the beneficiary's proceeds. So by proper planning, large amounts of money can be saved. What can also be done is an AB Trust. We take the Living Trust and upon death the trust is split into 2 parts. The have 1 portion which is the Survivor's half and we have the deceased's portion. We take 600,000.00 from the deceased's portion and put that into a special bypass trust just for the purpose of the beneficiary's which normally are the children, typically we don't make the distribution right away- we defer it. This is an advantage which helps you avoid the State Tax exclusion. Between spouses there is an unlimited marital exclusion so you can designate husband or wife or vice versa to access the funds. There are cases that we don't need an AB Trust, if the combined estate is over 1 million then you can decide on an AB Trust- the exemption can be doubled and pay 0 to State tax- which again can be a penalty for poor planning.
Steven Sears Attorney Upon death, the successor trustee enters immediately into authority over the asset which avoids probate. Now what happens to the assets that the control has been taken over is in the Trust agreement, you designate beneficiaries; which can be charities, children, educational programs, and trusts for other people, trust distributions, etc. For example, if you have young children, without a Will or Trust the children at age 18 get the entire distribution with Life Insurance, the proceeds could be substantial, millions of dollars could be involved.
Steven Sears Professional Building Retirement Plans
401K's and pension plans set up under Federal law (ERISA) are usually protected, however, IRA's are usually only protected under state laws and those laws vary widely. Part of our strategy is to move the unprotected portion to a fully protected strategy using pension plans and custodial accounts. Be careful, plan early. These is your retirement estate planning management is at stake.
Under the proper circumstances, the remedy that a creditor can use is called a "charging order." If any cash is distributed to you by the partnership, the creditor can take that cash to satisfy the judgment. If no distributions are made to you, the creditor receives nothing. The partnership can sell assets and retain or re-invest the proceeds; if no money comes to you, there is nothing for the creditor to take. A creditor cannot take your interest in management and control of the partnership and cannot take any assets of the partnership.
