This document discusses frequently asked questions about asset protection. It explains that asset protection planning is necessary due to the litigation explosion and rising jury awards. Asset protection strategies aim to legally insulate assets from potential future creditors or make assets difficult for creditors to access. The document outlines various Florida exemptions that protect certain assets, such as homesteads, wages, retirement plans, and life insurance. It also discusses asset protection entities like limited partnerships and offshore asset protection trusts that can provide stronger creditor protection than exemptions alone. The document stresses that while asset protection is best done preventatively, it may still provide benefits even when creditors are already present.
This document provides an overview of asset protection strategies. It discusses identifying risks, implementing plans before problems arise, and avoiding fraudulent transfers. It then summarizes three basic techniques: insurance to shift risks, statutory protections of exempt assets like a home, and asset placement by transferring ownership. Placement options include corporations, partnerships, trusts, and shifting assets between spouses to protect from each other's creditors.
Matt Nedin - Asset Protection Presentationmattnedin
The document discusses various domestic and international asset protection strategies. It summarizes that using Nevada corporations with liens or equity stripping provides protection. An international business corporation (IBC) and private interest foundation (PIF) provide additional layers of offshore protection when used together with Nevada corporations. The combination of these structures makes assets very difficult to attach in the event of a lawsuit.
This document outlines various asset protection strategies for business owners, including using different types of business entities, segregating business ownership, qualified retirement plans, captive insurance programs, and domestic or offshore asset protection trusts. It discusses setting up corporations, LLCs, partnerships, and professional entities to limit liability and protect personal assets. Segregating business ownership and using qualified plans provides additional layers of protection. Larger businesses may benefit from captive insurance, while trusts can help move assets outside an owner's estate for protection. Different strategies are suitable depending on the business size and a client's specific goals and assets.
This document discusses asset protection planning strategies for an individual professional athlete named X who is involved in an altercation that results in someone's nose being broken. It notes that X currently holds all assets in cash at a single institution, making them easily discoverable and attachable. The document then recommends strategies like forming a family limited partnership to own assets, purchasing insurance, and diversifying financial institutions. It discusses the importance of planning before incidents occur and notes offshore planning is not usually best due to the ability to hold individuals in contempt. Limited partnerships are highlighted as generally the best option due to charging order protections.
LifeHealthPro - Heres why cash value life insurance is a superior productJose Ariel Taveras
The document discusses the advantages of cash value life insurance over term life insurance and other financial assets. It outlines three main categories of advantages for cash value life insurance: 1) Tax advantages, such as tax-free growth of cash value and tax-free death benefits; 2) Financial advantages, as life insurance is designed using actuarial models to provide guarantees and potential increases in death benefits; and 3) Legal advantages, like state legal protections and guarantees of insurers. The document promotes cash value life insurance as a superior financial product compared to alternatives due to these inherent advantages.
Domestic Asset Protection Trusts for Estate Planningwardwilsey
The following examines the uses for the Domestic Asset Protection Trust in estate planning. While these trusts are commonly used for asset protection from creditors, they have a pretty amazing use for estate planning purposes as well.
If you'd like these slides with accompanying audio, please email me at wardwilsey@wilseylaw.com
Captive Insurance Group - A Risk Management Strategycaptiveinsurance
We provide our clients with unique risk management tools & support designed to help them control their costs with private insurance companies.
With extensive experience, our team of dedicated professionals can help deliver the stability and predictability you need in order to lower costs and drive profits.
With creative concepts and an intuitive grasp on our clients’ goals, we design policies that help you strengthen your position in the present and protect you as you head into the future.
This document provides an overview of asset protection strategies. It discusses identifying risks, implementing plans before problems arise, and avoiding fraudulent transfers. It then summarizes three basic techniques: insurance to shift risks, statutory protections of exempt assets like a home, and asset placement by transferring ownership. Placement options include corporations, partnerships, trusts, and shifting assets between spouses to protect from each other's creditors.
Matt Nedin - Asset Protection Presentationmattnedin
The document discusses various domestic and international asset protection strategies. It summarizes that using Nevada corporations with liens or equity stripping provides protection. An international business corporation (IBC) and private interest foundation (PIF) provide additional layers of offshore protection when used together with Nevada corporations. The combination of these structures makes assets very difficult to attach in the event of a lawsuit.
This document outlines various asset protection strategies for business owners, including using different types of business entities, segregating business ownership, qualified retirement plans, captive insurance programs, and domestic or offshore asset protection trusts. It discusses setting up corporations, LLCs, partnerships, and professional entities to limit liability and protect personal assets. Segregating business ownership and using qualified plans provides additional layers of protection. Larger businesses may benefit from captive insurance, while trusts can help move assets outside an owner's estate for protection. Different strategies are suitable depending on the business size and a client's specific goals and assets.
This document discusses asset protection planning strategies for an individual professional athlete named X who is involved in an altercation that results in someone's nose being broken. It notes that X currently holds all assets in cash at a single institution, making them easily discoverable and attachable. The document then recommends strategies like forming a family limited partnership to own assets, purchasing insurance, and diversifying financial institutions. It discusses the importance of planning before incidents occur and notes offshore planning is not usually best due to the ability to hold individuals in contempt. Limited partnerships are highlighted as generally the best option due to charging order protections.
LifeHealthPro - Heres why cash value life insurance is a superior productJose Ariel Taveras
The document discusses the advantages of cash value life insurance over term life insurance and other financial assets. It outlines three main categories of advantages for cash value life insurance: 1) Tax advantages, such as tax-free growth of cash value and tax-free death benefits; 2) Financial advantages, as life insurance is designed using actuarial models to provide guarantees and potential increases in death benefits; and 3) Legal advantages, like state legal protections and guarantees of insurers. The document promotes cash value life insurance as a superior financial product compared to alternatives due to these inherent advantages.
Domestic Asset Protection Trusts for Estate Planningwardwilsey
The following examines the uses for the Domestic Asset Protection Trust in estate planning. While these trusts are commonly used for asset protection from creditors, they have a pretty amazing use for estate planning purposes as well.
If you'd like these slides with accompanying audio, please email me at wardwilsey@wilseylaw.com
Captive Insurance Group - A Risk Management Strategycaptiveinsurance
We provide our clients with unique risk management tools & support designed to help them control their costs with private insurance companies.
With extensive experience, our team of dedicated professionals can help deliver the stability and predictability you need in order to lower costs and drive profits.
With creative concepts and an intuitive grasp on our clients’ goals, we design policies that help you strengthen your position in the present and protect you as you head into the future.
ACI's AML & OFAC Compliance for the Insurance Industry (Day 1)tnguyenaci
This document discusses sanctions compliance requirements for insurance and reinsurance companies. It provides an overview of key U.S. sanctions programs and definitions of prohibited "facilitation". The document outlines best practices for compliance programs, including screening policies and procedures, training, and oversight. It also discusses challenges international insurers face in complying with overlapping sanctions regimes and the importance of robust compliance programs.
Active Capital Reinsurance Ltd commenced operations in 2007, mainly providing credit-related reinsurance solutions to financial institutions in Latin America, and it has a general insurance and reinsurance license issued in Barbados.
Njscpa 2011 fiduciary responsibilities and riskMark Mensack
The correct answer is B. There are typically hundreds of pages of documents that would need to be reviewed to understand all the fees, compensation, and potential conflicts of interest involved in a retirement plan. Full transparency and disclosure of all relevant information is very challenging.
The document provides an introduction to captive insurance, outlining who should form a captive based on risk profile and financial resources, the types of companies that typically benefit from captives, and the benefits such as custom policies, tax advantages, and negotiating leverage. It also describes the key steps to forming a captive including performing a feasibility study, applying to the jurisdiction, and requirements around capital and surplus as well as ongoing requirements like using a domicile manager.
D&O Coverage: Tailoring Coverage for the Risks that Matter to YouJoeBeavers
This document provides an overview of directors and officers (D&O) insurance coverage. It discusses the types of litigation risks faced by corporate officers and directors, and how D&O coverage fits into the overall risk management structure along with indemnification provisions, the business judgment rule, and exculpation clauses. The document outlines the typical insuring clauses (Side A, B, C coverage), key policy definitions, and specialized D&O policy types like dedicated limit policies.
D&o power point presentationrims 2010.10.21John Celeste
This document provides an overview of D&O insurance coverage. It discusses the main types of coverage (Side A, B, C), what they cover, and some key terms. Side A provides personal coverage for directors and officers. Side B reimburses the company for its indemnification of directors and officers. Side C covers losses incurred by the company. D&O coverage protects corporate officials when indemnification is unavailable and allows companies to be reimbursed for indemnification payments.
The document discusses different methods of allocating liability among multiple insurance policies that cover a loss ("allocation methods") and their effects. It describes the majority "all sums" method, adopted in many states, which allows an insured to choose which triggered policies will pay and obtain contribution from other insurers. It also describes the minority "pro rata" method, adopted in some states, which divides liability proportionately among all triggered policies. The document provides an example comparing the results of applying each method. It also discusses issues that can arise, such as when a policy has a high self-insured retention or an insolvent insurer.
This document discusses captive insurance companies, which are insurance companies formed by businesses to insure their own risks or the risks of affiliated businesses. Captive insurance companies allow businesses to insure risks that are not covered by traditional commercial insurance, retain underwriting profits, take advantage of tax incentives, and provide asset protection and estate planning benefits. The document outlines how captive insurance companies work, the types of businesses that may benefit from them, requirements for legitimate captive insurance companies, and examples of policies that could be issued by captive insurers for different types of businesses.
A tax debt often takes a life of its own and the individual soon sees a snowball effect as the tax debt grows larger and impacts other areas of an individual's finances. Learn more about tax debt bankruptcy in Texas in this presentation.
I was tasked by my professor to present to the class about my experience and insight of the insurance industry. I engaged with my peers about the industry so they can have an a glance of what it is like. Since I had some background, I was given the opportunity to be the guest speaker.
Directors and officers liability insurance policiesOptimuminsurance
(http://optimuminsurance.com.au/ProductsServices/ProfessionalRisksInsurance/DirectorsOfficersLiabilityInsurance.aspx) - Directors and Officers Liability Insurance provides protection for the personal assets of directors and officers by providing indemnity for loss arising from a claim as a result of a 'wrongful act' committed by them in the course of conducting their business.
Directors and Officer's Liability InsuranceMeri Planning
This document discusses Directors and Officers (D&O) liability insurance. It notes the need for D&O policies given that directors can be held personally liable for negligent decisions or actions. It outlines the duties and potential liabilities of directors. The document then discusses what a typical D&O insurance policy covers, including legal defense costs, damages payouts, and exclusions from coverage. It also provides an overview of the underwriting process for these policies.
Umbrella insurance provides additional liability coverage above the limits of other insurance policies like auto and homeowners insurance. It has high limits of coverage, often in millions, and covers exposures not covered by other policies. There are two main types - umbrella liability insurance and umbrella commercial insurance. Umbrella insurance kicks in after other policies are exhausted and is meant to protect against very large claims by providing comprehensive excess coverage for liabilities from negligence. It aims to apply benefits worldwide and cover a wide range of injuries.
25 Questions to ask your D & O carrierJeff Otteson
This document discusses important questions that bank directors and officers should ask their Director's and Officer's Liability insurance carrier to ensure they have proper coverage. It lists 25 questions in key areas like policy definitions, limits, prior acts coverage, notice requirements, defense coverage, and exclusions. The document stresses the importance of bank leaders understanding the protections provided by their D&O policy, as their personal assets could be at risk. It recommends reviewing coverage with the board every 2-4 years.
Tenant Liability Insurance provides liability protection for both landlords and tenants by insuring tenants under a master commercial policy held by the landlord. This allows landlords to turn insurance into a profit center by charging tenants a monthly premium. The insurance protects landlords from losses caused by tenants and frivolous litigation. It also benefits tenants by providing more affordable coverage than traditional renters insurance. Landlords can further profit through establishing a captive insurance company to administer the program and share in premium revenues. Security deposit insurance is another potential profit opportunity by replacing cash deposits with an insurance policy.
Directors and officers liability Insurance Policy Newton Bezeng
Liability insurance arises as a result of moral hazard. MORAL HAZARD is the risk arising from the character or circumstances of the policyholder or his employees. Also, it is important to know the following: the history of liability insurance, who is a D&O in an Institution and the various types, what the D&O policy covers and what it excludes, and finally the importance of this insurance cover to us and our businesses.
“The New Bankruptcy Law : How Will It Affect Asset Protection?”daholmes210
The document discusses how the new bankruptcy law will affect asset protection planning. It notes that the law increases the Florida residency requirement to file for bankruptcy exemptions to 730 days from 91 days. It also requires debtors to live in their Florida homestead for 40 months to claim an unlimited homestead exemption, rather than immediately. For higher income individuals, a means test will determine eligibility for Chapter 7 bankruptcy based on disposable income amounts. However, Chapter 7 will remain an option for asset protection clients with primarily non-consumer debt and who meet the residency requirements. Overall, maximizing exemptions through planning before a claim arises is still the most important aspect of asset protection.
ACI's AML & OFAC Compliance for the Insurance Industry (Day 1)tnguyenaci
This document discusses sanctions compliance requirements for insurance and reinsurance companies. It provides an overview of key U.S. sanctions programs and definitions of prohibited "facilitation". The document outlines best practices for compliance programs, including screening policies and procedures, training, and oversight. It also discusses challenges international insurers face in complying with overlapping sanctions regimes and the importance of robust compliance programs.
Active Capital Reinsurance Ltd commenced operations in 2007, mainly providing credit-related reinsurance solutions to financial institutions in Latin America, and it has a general insurance and reinsurance license issued in Barbados.
Njscpa 2011 fiduciary responsibilities and riskMark Mensack
The correct answer is B. There are typically hundreds of pages of documents that would need to be reviewed to understand all the fees, compensation, and potential conflicts of interest involved in a retirement plan. Full transparency and disclosure of all relevant information is very challenging.
The document provides an introduction to captive insurance, outlining who should form a captive based on risk profile and financial resources, the types of companies that typically benefit from captives, and the benefits such as custom policies, tax advantages, and negotiating leverage. It also describes the key steps to forming a captive including performing a feasibility study, applying to the jurisdiction, and requirements around capital and surplus as well as ongoing requirements like using a domicile manager.
D&O Coverage: Tailoring Coverage for the Risks that Matter to YouJoeBeavers
This document provides an overview of directors and officers (D&O) insurance coverage. It discusses the types of litigation risks faced by corporate officers and directors, and how D&O coverage fits into the overall risk management structure along with indemnification provisions, the business judgment rule, and exculpation clauses. The document outlines the typical insuring clauses (Side A, B, C coverage), key policy definitions, and specialized D&O policy types like dedicated limit policies.
D&o power point presentationrims 2010.10.21John Celeste
This document provides an overview of D&O insurance coverage. It discusses the main types of coverage (Side A, B, C), what they cover, and some key terms. Side A provides personal coverage for directors and officers. Side B reimburses the company for its indemnification of directors and officers. Side C covers losses incurred by the company. D&O coverage protects corporate officials when indemnification is unavailable and allows companies to be reimbursed for indemnification payments.
The document discusses different methods of allocating liability among multiple insurance policies that cover a loss ("allocation methods") and their effects. It describes the majority "all sums" method, adopted in many states, which allows an insured to choose which triggered policies will pay and obtain contribution from other insurers. It also describes the minority "pro rata" method, adopted in some states, which divides liability proportionately among all triggered policies. The document provides an example comparing the results of applying each method. It also discusses issues that can arise, such as when a policy has a high self-insured retention or an insolvent insurer.
This document discusses captive insurance companies, which are insurance companies formed by businesses to insure their own risks or the risks of affiliated businesses. Captive insurance companies allow businesses to insure risks that are not covered by traditional commercial insurance, retain underwriting profits, take advantage of tax incentives, and provide asset protection and estate planning benefits. The document outlines how captive insurance companies work, the types of businesses that may benefit from them, requirements for legitimate captive insurance companies, and examples of policies that could be issued by captive insurers for different types of businesses.
A tax debt often takes a life of its own and the individual soon sees a snowball effect as the tax debt grows larger and impacts other areas of an individual's finances. Learn more about tax debt bankruptcy in Texas in this presentation.
I was tasked by my professor to present to the class about my experience and insight of the insurance industry. I engaged with my peers about the industry so they can have an a glance of what it is like. Since I had some background, I was given the opportunity to be the guest speaker.
Directors and officers liability insurance policiesOptimuminsurance
(http://optimuminsurance.com.au/ProductsServices/ProfessionalRisksInsurance/DirectorsOfficersLiabilityInsurance.aspx) - Directors and Officers Liability Insurance provides protection for the personal assets of directors and officers by providing indemnity for loss arising from a claim as a result of a 'wrongful act' committed by them in the course of conducting their business.
Directors and Officer's Liability InsuranceMeri Planning
This document discusses Directors and Officers (D&O) liability insurance. It notes the need for D&O policies given that directors can be held personally liable for negligent decisions or actions. It outlines the duties and potential liabilities of directors. The document then discusses what a typical D&O insurance policy covers, including legal defense costs, damages payouts, and exclusions from coverage. It also provides an overview of the underwriting process for these policies.
Umbrella insurance provides additional liability coverage above the limits of other insurance policies like auto and homeowners insurance. It has high limits of coverage, often in millions, and covers exposures not covered by other policies. There are two main types - umbrella liability insurance and umbrella commercial insurance. Umbrella insurance kicks in after other policies are exhausted and is meant to protect against very large claims by providing comprehensive excess coverage for liabilities from negligence. It aims to apply benefits worldwide and cover a wide range of injuries.
25 Questions to ask your D & O carrierJeff Otteson
This document discusses important questions that bank directors and officers should ask their Director's and Officer's Liability insurance carrier to ensure they have proper coverage. It lists 25 questions in key areas like policy definitions, limits, prior acts coverage, notice requirements, defense coverage, and exclusions. The document stresses the importance of bank leaders understanding the protections provided by their D&O policy, as their personal assets could be at risk. It recommends reviewing coverage with the board every 2-4 years.
Tenant Liability Insurance provides liability protection for both landlords and tenants by insuring tenants under a master commercial policy held by the landlord. This allows landlords to turn insurance into a profit center by charging tenants a monthly premium. The insurance protects landlords from losses caused by tenants and frivolous litigation. It also benefits tenants by providing more affordable coverage than traditional renters insurance. Landlords can further profit through establishing a captive insurance company to administer the program and share in premium revenues. Security deposit insurance is another potential profit opportunity by replacing cash deposits with an insurance policy.
Directors and officers liability Insurance Policy Newton Bezeng
Liability insurance arises as a result of moral hazard. MORAL HAZARD is the risk arising from the character or circumstances of the policyholder or his employees. Also, it is important to know the following: the history of liability insurance, who is a D&O in an Institution and the various types, what the D&O policy covers and what it excludes, and finally the importance of this insurance cover to us and our businesses.
“The New Bankruptcy Law : How Will It Affect Asset Protection?”daholmes210
The document discusses how the new bankruptcy law will affect asset protection planning. It notes that the law increases the Florida residency requirement to file for bankruptcy exemptions to 730 days from 91 days. It also requires debtors to live in their Florida homestead for 40 months to claim an unlimited homestead exemption, rather than immediately. For higher income individuals, a means test will determine eligibility for Chapter 7 bankruptcy based on disposable income amounts. However, Chapter 7 will remain an option for asset protection clients with primarily non-consumer debt and who meet the residency requirements. Overall, maximizing exemptions through planning before a claim arises is still the most important aspect of asset protection.
The document discusses the concept of securities and their evolution. It notes that securities were developed to build trust between investors and companies. Key developments included the establishment of stock brokers and exchanges. Regulations have also evolved over time, from requirements around prospectuses to addressing fraudulent transactions and improving disclosure. The US Securities Act of 1933 provides a broad definition of "security" that includes various investment vehicles. Case law, such as SEC v Howey Co., established tests to determine what constitutes an investment contract and therefore a security. Subsequent cases further refined the analysis around what constitutes a common enterprise and the source of expected profits.
The Mexican Trust, also known as a fideicomiso, is a commercial contract governed by Mexico's general law of credit instruments and operations. It typically involves three parties: a trustor who transfers assets to a trustee to hold and manage in accordance with the trust's purposes. While the trustee holds legal title to the assets, they are meant to benefit the beneficiary. Trusts are created for specific purposes and trustees must act within the bounds of those purposes. Common uses of trusts in Mexico include land trusts for foreign real estate ownership, administrative trusts for estate planning and asset management, and guaranty trusts for securing loans. Overall, trusts provide flexibility for various personal and business purposes in Mexico.
Asset protection planning allows individuals and business owners to protect their wealth from potential creditors. It involves using insurance, statutory exemptions provided under Texas law, and placing assets in legal structures like trusts to separate ownership from possession. While Texas is friendly to debtors, certain transfers made to avoid creditors can still be challenged if intended to hinder, delay, or defraud them. Asset protection planning is most effective when started early using a layered approach that first utilizes insurance and exemptions before establishing more complex legal structures.
Securities Law: An Overview (Series: Securities Law Made Simple (Not Really)) Financial Poise
This webinar provides an overview of securities law, including defining what constitutes a security, the key laws governing offers and sales of securities, registration requirements and available exemptions, consequences of failing to comply, and secondary market operations. A panel of securities law experts from large law firms discuss the fundamentals and latest developments in this area.
Title insurance protects homeowners and lenders against errors in property ownership records. It insures the legal owner against losses from defects in the title that occurred prior to purchasing the property. There are two main types of title insurance - an owner's policy that protects the homeowner and a lender's policy that protects the mortgage lender. Title companies examine public records like deeds and wills to eliminate risks, but some hidden issues can still arise after purchase. Title insurance will defend against legal claims from issues like forged documents that impact the owner's title to the property.
Insider Lease Agreements (Series: Fairness Issues in Real Estate-Based Bankru...Financial Poise
It is a common play in real estate to create a separate operating entity to serve as a tenant and execute a lease between the owner of the property and himself. Typically, this happens in assets which serve as a real estate-based business, such as a retail property. The structured enables the operator to reduce the taxable income of the business and also provide a liability shield for the property owner.
This arrangement can lead to some ethical issues, should the property owner become distressed. For example, is the lease amount above market and therefore being used to inflate the property valuation? Is rent actually being paid? Is there a proper lease in place or just an internal handshake? Attorneys need to understand the set-up in order to know what is in bounds and what is outside the lines.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/insider-lease-agreements-2021/
DeStefano, claim funders and stone soup hls 11 12-12Michele DeStefano
The broad thesis of this presentation is that an environment that fosters input from nonlawyers is better than a closed one, and that the time has come to rethink the U.S. legal profession's rules and structures that were designed to narrow exposure to, and influence by, nonlawyers. To illustrate this contention, this presentation highlights one recent movement in the globalized legal marketplace that remains stymied in the United States: nonlawyer investment in claims i.e., claim funding. [The current rules and regulations governing nonlawyer investment in claims epitomize the U.S. legal profession's stance on collaboration between law- yers and nonlawyers. Many states completely outlaw claim funding by nonlawyers based on outdated and arguably inaccurate interpretations of the ancient doctrines of maintenance, interfering in a legal proceeding by a third party that is not a party to the suit; champerty, maintenance for a profit; and barratry, inciting litigation. Although some states have abolished these antiquated barriers to claim funding, many states make approval contingent on the third-party funder having absolutely no control, input, or influence over litigation decisions and case management--a rule that, as a practical matter, is unrealistic.
This presentation starts with the premise that law is a business, and thus the legal market cannot be insulated from capital markets. Because what happens in other parts of the world invariably affects what happens in the United States, there will be strong pressure for the United States to allow investment in claims in all fifty states, and to a greater degree than currently allowed. Although the bar may be able to resist buy-in for some unpredict- able but possibly significant period of time, this presentation contends that lawyers and clients will potentially benefit if the U.S. bar embraces claim funding in the commercial context and implements a regulatory system to maximize its advantages and minimize its potential risks. Further, this presentation utilizes the example of claim funding to show that granting nonlawyers more influence could stimulate much needed innovation in the provision and management of legal services, enhance problem solving and efficiency for the benefit of clients and society, and in- crease lawyer's ability to compete in a global marketplace. Instead of equating outside influence by nonlawyers with having “too many cooks in the kitchen,” the U.S. legal profession could take advantage of a regulated level of influence to help create the richest stone soup possible.
The use of a Land Trust allows a person to buy a piece of property, conceal the fact that they own the property, limit themselves from most liability associated with the property, yet retain almost all the rights of ownership including, legally claiming Homestead exemption if the property is a primary residence. A land trust is an arrangement whereby one person or entity (the trustee) holds both legal and equitable title to real estate and holds it for the benefit of another party (the beneficiary).
Single-Member LLCs Threatened By Recent Florida Supreme Court RulingFBass
The Florida Supreme Court ruled in Olmstead v. Federal Trade Commission that a judgment creditor may seize a debtor's membership interest in a single-member LLC, allowing the creditor access to the LLC's assets. This ruling eliminated the protection that LLC assets previously enjoyed from the creditors of individual members. The ruling casts uncertainty over the protections afforded to multiple-member LLCs as well. LLC owners concerned with maintaining asset protection for LLC assets should consult legal counsel, as planning options like Florida limited partnerships can still provide protections if implemented before claims arise.
Single-Member LLCs Threatened By Recent Florida Supreme Court Rulingdaholmes210
The Florida Supreme Court ruled in Olmstead v. Federal Trade Commission that a judgment creditor may seize a debtor's membership interest in a single-member LLC, allowing the creditor access to the LLC's assets. This ruling eliminated the protection that LLC assets previously enjoyed from the creditors of individual members. The ruling casts uncertainty over the protections afforded to multiple-member LLCs as well. LLC owners concerned with maintaining asset protection for LLC assets should consult legal counsel, as planning options like Florida limited partnerships can still provide protections if implemented before claims arise.
This document provides information and recommendations for physicians to reduce liability risks. It discusses how medical errors and malpractice claims are increasing costs. It recommends obtaining proper malpractice insurance and using legal entities and retirement plans to protect assets. Specific strategies include transferring assets to a spouse or trust, using homestead protections, and purchasing personal liability umbrellas. The document encourages contacting professionals like financial planners and lawyers to implement an asset protection plan.
This document provides a summary of a presentation on current trends in construction litigation and insurers' defense and indemnity obligations. The presentation was given by attorneys from the law firm Tharpe & Howell and covered various topics including types of liability policies, insureds and additional insureds, defense obligations, self-insured retentions, indemnity obligations, coverage triggers, endorsements and exclusions, claims handling, and contribution between insurers. The panel discussed recent case law and trends in each of these areas of insurance law as they relate to construction defect litigation.
This document summarizes asset protection strategies for physicians. It discusses how physicians are at high risk of creditors and lawsuits due to their occupation. It then outlines various solutions to manage this risk, including proper titling of assets, exemption planning, use of trusts, LLCs and partnerships to protect assets. It cautions that offshore trusts should not be used solely to avoid taxes or hide assets, as that may constitute fraud. Finally, it stresses that developing a comprehensive asset protection plan before creditors arise can help manage risks.
Dana Chiles | Introduction to Real Estate Insurance for Realtors and Mortgage...Dana Chiles
Insurance requirements have become such an integral part of the real estate and loan transaction, they must be included in any comprehensive discussion of real estate finance.
This presentation was for financial planners and insurance professions on risk planning concepts including trusts, business entities and estate planning strategies.
ACTEC Journal - Practical Guidance For Trustee Risk Managementlwolven
This document discusses the increasing risks and responsibilities faced by trustees. It notes that fiduciary litigation is on the rise as beneficiaries more frequently seek legal recourse for perceived wrongs. Even attorneys well-versed in fiduciary law are sometimes hesitant to take on trustee roles given the liability risks. The document outlines the duties and standards required of trustees, including acting with ordinary prudence. It also discusses scenarios where trustees can face liability, such as for environmental contamination on trust property or failing to identify imprudent investments.
1) The document discusses the implications of including a 'waiver of subrogation' clause in construction works insurance policies where there are multiple insureds. It notes that such a clause could have unintended consequences for the insurer if not carefully worded.
2) It then provides background on the legal concept of subrogation, including that it allows an insurer to 'step into the shoes' of the insured and recover losses from third parties. However, subrogation cannot be used by an insurer against its own insured.
3) The document analyzes a court case where a subcontractor claimed protection under the waiver of subrogation clause in the principal contractor's insurance policy, even though the subcontract
1. PERSONAL INJURY & WRONGFUL DEATH
LITIGATION
ESTATE PLANNING ASSET PROTECTION By: David A. Holmes
April 2004
REAL ESTATE LAW Frequently asked questions
FAMILY LAW
Increasingly, clients ask about how to protect their assets from lawsuits and
ENVIRONMENTAL whether they can take steps to insulate assets in the event they are sued. The
most frequently asked questions about asset protection are discussed below:
BUSINESS
Why is asset protection necessary?
TAX LAW Our nation has seen a litigation explosion in recent years. Essentially no business or professional activi-
ty is exempt from the increasing risk of being sued. Each year, more and more suits are filed. At the same
ELDER LAW
time, jury verdicts have skyrocketed. In this environment, planning for a potential lawsuit must be part of
ASSET PROTECTION the business and estate planning process.
What is asset protection?
Asset protection planning is the legal and ethical process of reviewing financial holdings and restructur-
ATTORNEYS ing those holdings to take advantage of legal exemptions that may place those assets beyond the reach of
potential future creditors or at least make those assets more difficult for a creditor to reach. In addition
GUY S. EMERICH to insulating assets from creditor attack, asset protection planning can allow you to deal with future cred-
ROBERT C. SIFRIT
itors from a position of strength, rather than defensively when your assets are at risk.
Who needs asset protection?
JACK O. HACKETT II
Anyone who has accumulated assets (real estate, stocks, bonds, and other investments) is a target and
MICHAEL P. HAYMANS should review their holdings from the perspective of “What will happen if I get sued?”
CHARLES T. BOYLE What strategies are available?
Asset protection techniques range from the simple to the complex. No single document can cover all of the
DAROL H.M. CARR options; however, asset protection planning generally includes a review of the legal exemptions available and
consideration of one or more protective entities. Some of the issues covered in an asset protection review are
CONNIE M. SCHIDER
summarized below:
MARK A. DRAPER EXEMPTIONS
DAVID A. HOLMES Nearly every state has asset exemptions that are intended to protect certain holdings by placing them beyond
the reach of judgment creditors. Florida has some of the most generous exemptions. A number of those
GARY A. KAHLE
exemptions are discussed below. Each exemption has a number of technical requirements that must be dis-
JENNIFER R. HOWELL cussed before action is taken.
JASON M. LUCAS Homestead.
The Florida constitution protects the homestead from most judgments against the owner of the homestead.
ROGER H. MILLER III Unlike other states, Florida’s homestead exception is not capped at any dollar amount.
DOROTHY L. KORSZEN Entirety Ownership.
Florida law recognizes the doctrine of tenancy by the entirety. Tenancy by the entirety is a specific form of
JILL C. McCRORY
joint ownership available only to husband and wife. When husband and wife own property as tenants by the
EARL DRAYTON FARR, JR. entirety, that property cannot be reached by a party obtaining a judgment against one spouse or the other. The
property is only at risk to a party obtaining a judgment against both spouses. The protection afforded by ten-
(Of Counsel)
ancy by the entirety is limited. First, entirety ownership provides no protection against joint creditors.
Moreover, a tenancy by the entirety only survives as long as the marriage remains intact.
2. PERSONAL INJURY & WRONGFUL DEATH
LITIGATION
ESTATE PLANNING
REAL ESTATE LAW
FAMILY LAW Wages.
The wages of a head of household are generally exempt from attachment or garnishment. Moreover, dispos-
ENVIRONMENTAL able earnings of a head of household deposited into a financial account are exempt for six months after the
earnings are received, so long as the funds can be traced and identified as wages. Through a properly struc-
BUSINESS
tured and funded “wage account” up to six months of wages can be continuously protected.
TAX LAW
Retirement Plans.
ELDER LAW Another statutory exemption relates to specific types of retirement plans. Money held by or payable to a
participant in such plans is exempt from all claims of the participant’s creditors; however, only specified plans
ASSET PROTECTION are protected.
Other Exemptions.
Florida law also protects annuity contracts and life insurance policies. Specifically, proceeds of annuity con-
tracts issued to citizens or residents of the State of Florida are generally exempt from the claims of the cred-
itors of the party holding or benefiting from the annuity contract. Cash surrender values of life insurance
policies issued upon the lives citizens or residents of the State of Florida are also exempt from creditors
claims. There are a number of other exemptions available under Florida law that can be specifically reviewed
on an individual basis.
ASSET PROTECTION ENTITIES
Because the exemptions discussed above are inherently limited, it is often necessary to look to other struc-
tures for the protection. Two of the most frequently adopted structures are summarized below:
Limited Partnerships.
Limited Partnerships are the cornerstone of asset protection planning under Florida law. A limited partner-
ship divides ownership of property among groups of partners that include general partners and limited part-
ners. The general partner or partners retain control over the partnership property and the business of the
partnership. Limited partners maintain an interest in the partnership property and distributions from the
partnership, but exercise no control over the assets held in the partnership. Parties obtaining a judgment
against the holder of a general or limited partnership interest in a Florida limited partnership obtain only a
limited remedy known as the charging order. Once issued by the court, a charging order will entitle the
judgment holder to receive whatever distributions or other payments the partner against whom the order is
entered would receive, until the judgment is paid in full. The charging order will not permit the creditor to
take partnership property or exercise control over the partnership assets—which is far preferable to having
941-639-1158 the property taken after a judgment is entered. Limited partnerships can also provide a number of tax and
Punta Gorda estate planning benefits.
941-460-9334
Englewood
3. PERSONAL INJURY & WRONGFUL DEATH
LITIGATION
ESTATE PLANNING
Asset Protection Trusts.
REAL ESTATE LAW
A number of jurisdictions outside of the United States have long recognized the validity of trusts that
FAMILY LAW protect the trust assets from the creditors of the individual establishing the trust—even when that indi-
vidual is the only beneficiary of the trust. Many of these jurisdictions have a number of other favorable
ENVIRONMENTAL laws, and permit the individual establishing the trust to exercise a significant measure of control over
the trustee and trust property without voiding the trust. Moreover, the protection afforded by these
BUSINESS
trusts is rarely dependent upon domestic judges and juries. Taken together, these factors make offshore
TAX LAW trusts perhaps the most effective method of asset protection. These trusts can be established in a way
that allows the trust assets to remain in the United States until a time when they are under attack.
ELDER LAW Moreover, unlike partnerships, an asset protection trust can preserve the ability of the client to regular-
ly access the protected funds, even when a judgment is in place. Such trusts can also be qualified as
ASSET PROTECTION
domestic for tax purposes and do not impose any tax burden when properly established.
Is it ever too late to start?
Like all states, Florida has a Fraudulent Transfer Statute. This statute prohibits transfer of assets from
a holding in which they are subject to creditor’s claims to a holding in which they are exempt from cred-
itor’s claims, when the transfer is undertaken with the intent to avoid, hinder or delay creditors. In sim-
plest terms, once a claim is made or litigation is commenced, the ability to transfer assets beyond the
reach of creditors is significantly limited. Accordingly, advance planning is the key to a successful asset
protection strategy. Once a claim is made, it is often too late to pursue many of the options discussed
above.
What is the best solution?
There is no single asset protection plan that works for everyone. Establishing an effective plan involves
a thorough examination of assets, liabilities, family relationships, risk tolerance, and a number of other
factors. Formulating the appropriate plan is best accomplished in consultation with an experienced team
of legal and financial advisors.
To receive this Newsletter, please contact us at the address below.
Punta Gorda Office:
99 Nesbit Street -
Punta Gorda, Florida 33950 -
941.639.1158 (tel) - 941.639.0028 (fax)
Englewood Office:
1160 S. McCall Road -
941-639-1158
Englewood, Florida 34224 -
Punta Gorda
941.460.9334 (tel) - 941.460.9443 (fax)
941-460-9334
Englewood
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