COHABITATION PROPERTY RIGHTS FOR UNMARRIED COUPLES

wfb_legal_consulting_inc_largeWhen unmarried couples live together for a while, it is likely that they accumulate a good amount of property. In this case, it is in each person’s best interest to write out a property agreement that spells out who owns what and how the property will be distributed should the couple separate. This is especially important if a couple acquires real estate together. On the other hand, this agreement is probably not necessary for couples who have only lived together a short time and do not have much property.

Without an agreement, you could face expensive and time consuming legal battles, defending your property rights. This trouble can be saved by each party entering an agreement they both consent to, while the relationship is sound.

 WHAT A COHABITATION PROPERTY AGREEMENT SHOULD INCLUDE

 A cohabitation property agreement is about you and your partner, and therefore, should include what meets the specific needs of your relationship. Most agreements include the following:

  • How specific assets are owned
  • Whether, and how, income and expenses are shared
  • How newly acquired assets are owned?
  • How bank accounts, credit cards, insurance policies, etc. will be managed
  • How specific assets will be distributed in the event of a separation, or what process will be used for resolving disputes of property rights

HOW TO COVER YOUR HOUSE IN A COHABITATION PROPERTY AGREEMENT

 Because buying a house together is such a huge financial responsibility and can carry emotional ties with it, including the purchase of your home in your cohabitation property agreement is particularly important. Take extra care with your plans to ensure that you do not cut yourself short of your property rights. This part of your contract should cover at least the following:

  • How the ownership is listed on the deed of the house. If you own the house as “joint tenants with right of survivorship,” when one of you dies, the other automatically inherits the entire house. If you own the house as “tenants in common,” when one of you dies that person’s share of the house goes to whomever he or she names in a will or trust. If the deceased person does not have a will or trust, his or her portion of the house will go to blood relatives according to state law.
  • How much of the house each partner owns.Additionally, you should include how any portion of the home can be transferred between the partners. For example, if the one who owns less can acquire more by making improvements or mortgage payments, this should be specified in the agreement.
  • The buyout rights, if any, and how the house will be appraised. Usually, people decide to have their original realtor appraise the house. Then, they allow one partner no more than five years to pay the other partner for the home. This varies, and should be specified to your own specific needs.
  • What happens to the house if you break up. Decide how the proceeds will be divided upon a sale, who will stay in the house if it is not sold, or what your buyout plan will be.
  • Eviction: The law in most states says that if someone has been living with you for a certain number of months, he or she has a legal right to live there (even if the person isn’t on the lease or deed). You have to go through a formal eviction to remove the person from the premises. You will have to go to your local courthouse to file a “Complaint for Eviction” or something similar.

 Support Payments:

Many people use the term “palimony” to refer to support paid to an ex-partner when the couple was never married. Palimony is not a legal term and carries no legal significance. In fact, members of unmarried couples have no rights to support, unless the two have previously agreed on it. To avoid a tense disagreement about palimony, it is in the couple’s best interest to include whether or not support will be paid in a written agreement. Recently, the California Supreme Court ruled that an ex-partner could sue for support if he or she could show that an implied contract existed between the two.

 Importance of Including Income in a Cohabitation Property Agreement:

Creating a cohabitation property agreement in the beginning, while the relationship is still sound can avoid a lot of tension, disagreement, and hassle should the couple break up. Property that is owned separately could be changed by the circumstances or by one of the partners claiming that there was an agreement to something, when there really was not. This becomes even more important when one of the partners makes significantly more money and supports the other partner who has little or no income.

Example: Pat and Sam are unmarried partners who decide to move in together. Pat is a successful surgeon, and Sam is unemployed. They use Pat’s income to purchase a home that Sam will fix up. To protect their individual property rights, just in case they break up, they decide to enter into a written cohabitation property agreement. In the agreement, they decide that after Sam completes the home improvements according to the couple’s plans, they will become joint tenants with the right of survivorship. They also agree that all furniture and fixtures that they place in the home will be owned and divided equally, should they break up. Their agreement explains that if the couple breaks up, that Sam would remain in the house to care for their child, but that Sam will compensate Pat for Pat’s portion within 5 years. Aside from this house payment, no support or other payments will be exchanged between the couple.

 Liability for Debts:

Unmarried partners are not responsible for each other’s debt unless they have a joint account or one is a cosigner or guarantor for the other. This is different from married partners who can be held liable for marital debts. In some states, registered domestic partners are responsible for all debts acquired for basic living expenses, like food, shelter, and clothing.

 Property Rights of a Surviving Cohabitating Partner:

A surviving partner has no property rights to the deceased partner’s individual property – unless a partner leaves property to the surviving spouse by will or trust. Now if the couple owns real estate as joint tenants with rights of survivorship, then the surviving partner will inherit the deceased partner’s half. But as you can see, these are very specific examples.

Some states that recognize domestic partnerships do have rights to inherit a portion of the deceased partner’s property. However, the best way to provide for the surviving partner is by leaving a will or living trust.

 Need More Information About Property Rights? Get a Free Legal Consultation.

Property agreements are very important and useful tools for protecting the property rights of unmarried, cohabitating partners. The agreement should be designed according to the couple’s specific situation. If your certain circumstances are complicated or you have questions about how your property rights can be affected by your relationship, consult WFB Legal Consulting, Inc.–lawyer for bussiness today for a free initial legal consultation. A BEST ASSET PROTECTION Services Group.

THE REALITIES OF SOLE-PROPRIETORSHIPS

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Contribution by Mark Kohler

What is a Sole-Proprietorship? A Sole-Prop is the simplest form of doing business.  All you need to do is just start selling your product or service. No Tax ID# (“EIN”) is required. No Doing-Business-As Registration (“DBA”) is required (although recommended for marketing purposes).  No bank account is required (although recommended for bookkeeping and audit protection). No extra tax return required. All of your income and expenses are reported on your 1040 Tax Return- Schedule C.

 The BIG Problems with Sole-Proprietorships:

  • Tax planning to avoid self-employment tax. One of the primary disadvantages of a Sole-Prop is the Self-Employment tax of 15.3% on your net-income generated by the business.  This blindsides a lot of new small business owners with a big tax bill in the Spring of the following year. Again, the tax benefits of owning a small business are fantastic!  But after you write-off all of your ‘personal conversion expenses’, and the business still has profit, the SE Tax will kick in on everything else.  However, if you don’t have a lot of net-income, don’t worry about the Sole-Prop and consider your next issue with your professional.

 

  • Liability exposure from your product, services or location. Another primary disadvantage of the Sole-Prop that most people are already aware of is the owner’s personal exposure for the liabilities of the business. Thus, carefully analyze where the risks exist and if you indeed have exposure.  If you do, you may want to consider setting up an entity even if it is unnecessary for tax purposes or any other reason.  A strategic option is setting up an LLC, but taxing it as a Sole-Proprietorship.  This way you get asset protection with an LLC, but don’t have the cumbersome tax reporting of a S or C-corporation. However, if you are running a zero to low exposure business, forget about setting up an entity and move onto the next level of analysis.

 Anything GOOD about a Sole-Proprietorship?

  • Simple and easy (nothing to sign. Just say it- “I’m in business!!!”)
  • In business NOW (test out your product and service)
  • No State or Federal Filing (a DBA may not even be necessary)
  • No Bank Account (however I would like you to set one up separate for the business)

 What if I have a partner or investor in the business? If you have a partner or investor in your business, it’s almost a given you will form an entity rather than operate as a Sole-Prop.  Simply by definition, if you have a ‘partner’ than you will be taxed as a partnership, need to file a partnership tax return, and have the personal vicarious liability exposure for your partner’s actions.  Not to mention you will want to document your relationship with those individuals you are doing business with and be careful not to open yourself up to a lawsuit with a ‘hand-shake deal’.

 Where you live and do business does matter. It’s important to realize that if and when you set up an entity, it’s absolutely critical you establish the entity in the state where you are doing business.  If you don’t, more than likely you won’t receive any benefit from the structure.  As such, when you do your cost benefit analysis, look specifically at your state and it may be more advantageous to operate as a Sole-Prop.  For example the filing fees for an entity can be extremely high in states like Texas, or Illinois, and the on-going minimum tax for an entity can be too expensive in states like California.

 Business goals and marketing plans. If you are investing in a robust marketing plan and working hard to ‘brand’ your company name or product. Setting up an entity initially may be a wise move to protect your name (at least in the State where you are doing business).  Starting out as a Sole-Prop may be cheap and easy, but could cause you some money and headaches to re-brand and start over later. Moreover, you may want the legitimacy and image of having something more established like an LLC or Corporation and forming an entity would be more strategic than looking like a start-up in the garage doing business under your personal name as a Sole-Prop.

Administrative costs and demands of setting up an entity.  If the costs of setting up and maintaining an entity far outweigh any benefits they offer, than a Sole-Prop makes could be the perfect fit. If you don’t have a tax, liability or partner issue, this is when using a Sole-Prop tends to make the most sense.

I often tell clients that unless there is a major liability issue, starting out as a Sole-Prop is a great fit. Don’t get too complex too quickly.  Make sure the business concept is viable and making money before investing in a more advance structure.

 Bottom line action items:

  • If you anticipate making more than 30k in net-income before year-end, consider the S-Corporation.
  • If you have liability exposure, consider a single member LLC to create protection, but the simplicity of tax reporting as a sole-proprietor.
  • If you have partners or investors, consider an LLC so you can avoid the vicarious liability for your partner’s actions, and have the Operating Agreement for the LLC to document the ‘agreement’ between each of you.
  • If you need the credibility and image of a formal ‘Inc’ or ‘LLC’ behind your name and plan to invest in your brand and image, staying away from the Sole-Prop could save you a lot of headaches down the road trying to re-brand your company name, etc.

BEST ASSET PROTECTION SERVICES GROUP

WFB Legal Consulting, Inc.

Lawyer for Business

 

 

FIVE WAYS TO SABOTAGE YOUR LIABILITY PROTECTION AFTER INCORPORATION

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Many new business owners understand that incorporating or forming a Limited Liability Company (LLC) helps shield a business owner against being held personally responsible for their company’s liabilities and debts. This is known as the corporate shield or corporate veil as it separates your personal assets from those of the business.

Liability protection is not absolute and there are several instances where a business owner can be personally liable in business despite the fact he or she created a business entity.
Here are five of the most common ways this can happen:
1. Negligence and Personal Liability
In many situations, the limited liability protection from an LLC or corporation will not shield you from being liable for your own personal negligence. A person is typically liable for his or her own personal conduct when that conduct injures someone else. For example, if an electrician installs some wiring in a customer’s home and forgets to cap a live wire, the electrician can be personally liable if someone gets electrocuted. Likewise, if you’re driving to a client meeting in a company car and are negligent and hit someone, you can be personally liable for any injuries and damages.
2. Fraud
If you make untrue claims about a product or service, this is considered fraud. For example, if you’re marketing a milkshake supplement and guarantee that customers will shed 20 pounds per month just by drinking it, this could be a clear case of misrepresentation or fraud. If you claim that your glass container is BPA-free (when actually it does contain BPA), this also is fraud. In such cases, both the manufacturer as well as the company selling the product may be liable.
3. Personal Guarantee on Business Loans
When you first start your business, many third parties and creditors won’t be willing to do business with your LLC or Corp, as the entity is brand new and probably does not have a lot of assets or hasn’t built its own credit history yet. As a result, a bank or landlord may require the business owner or LLC member to “personally guarantee” a loan or lease. If you sign such an agreement, then you will be personally liable for those specific obligations.
4. “Piercing the Corporate Veil”
Many new business owners form an LLC or Corporation and then continue to operate their business as if that business entity didn’t exist. It’s very important that you follow through with all corporate formalities required for your LLC or corporation. For example:
• Pay your business’ state and federal taxes
• Don’t commingle your personal and business finances
• File your annual report (if required by the state)
• Keep up to date with your corporate minutes and resolutions (if necessary)
• Record any changes with ‘Articles of Amendment’ (if necessary)
• Have a board of directors and hold annual meetings of shareholders (if necessary)
You’ve got to make sure that your corporation or LLC remains in good standing. Why? Because if your business happens to be sued and the plaintiff shows you haven’t maintained your LLC/Inc to the letter of the law, your corporate veil is pierced and you can be personally liable again.
5. Conducting Business Out of State
If you’ll be conducting business in a state other than the state where you formed your corporation or LLC, you will need to obtain authority to do so. In most cases, this entails qualifying as a Foreign Corporation or LLC within the state that you will be doing business. Specific licenses and permits may also be required for certain types of businesses as well.
For example, let’s say you run a small software development company based in Nevada and your company serves clients located outside Nevada. At this point your company is most likely not considered to be operating out of state. However, once you open a small development office with a few employees in California, your business will probably be considered to be doing business in California and you will have to file a Statement and Designation by Foreign Corporation form with California.

DO I NEED AN ATTORNEY TO FORM AN LLC?

YES, in my opinion. While an attorney is not a legal requirement, online formation services and document providers will typically only provide you with fill-in-the-blank forms (form Operating Agreement, form Organization Minutes, and form Membership Interest documents), which unfortunately eliminates the main benefit of the LLC – the ability to customize the relationship of the members. These online services also often leave the members to operate the LLC with little or no instruction, which in a majority of cases causes the LLC members to lose their personal limited liability protection, thus exposing each of the members to potential personal liability for the LLC’s debts and obligations. “Would you go to a nurse, instead of a doctor, for cardiac surgery?” But the reality is most people will not see a lawyer until they are forced to hire a litigation attorney, or bankruptcy attorney, who informs them that they could have protected their personal assets, but didn’t.

Most attorneys, especially civil litigators, have a lot to gain from owners of companies (especially LLCs and Corporations) who fail to form and operate their business with the required formalities because instead of spending a few hundred dollars a year with a business attorney or corporate attorney to dot the i’s and cross the t’s, now the individual is going to spend $10,000 to $50,000 to defend a lawsuit, and still face the real probability of not only having to file a company bankruptcy, but a personal bankruptcy as well.

The reason for the custom documents is to provide, amongst a multitude of other things, (1) detailed instructions on how to run and operate the LLC; (2) qualifications as to who can be a manager of the LLC; (3) restrictions on which members/managers can bind the limited liability company; (4) provisions to reduce the likelihood of disputes among the members; and (5) a mechanism to resolve disputes or a deadlock among the members without costly litigation (at least where possible).

5 HOT TAX DEDUCTIONS TO CONSIDER BEFORE YOU FILE

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As all small business owners know, this is a critical time of year to try and dig up all the expenses we can from last year in order to drive down our tax bill as low as possible.

1. Travel related expenses.  In my opinion, this is one of the most underutilized tax deductions by small business owners today.  Unlike meals and entertainment that are limited by 50%, travel expenses are 100% deductible.  These include airfare, hotel, rental cars, valet, taxi, trains, tolls, etc…  You would be shocked to know how many tax returns come across my desk every year of new clients with literally zero travel deductions.  Consider all of your travels last year that may have involved a meeting with a client, a vendor,  or a training meeting, a tour of a competitor’s facility or store, your annual board of directors, shareholder, manager or member meeting, a conference with retreat with a partner, the list goes on and on.  It just doesn’t make sense for any business owner to not have some travel expenses.

2. Auto Deductions.  Remember this isn’t travel, but expenses for your car or truck used in your business.  There are two main options:  mileage or actual expenses, and statistics show that 90% of small business owners actually utilize the mileage method.  For 2014 this was 56 cents per mile.  Surprisingly, again I see many taxpayers shy away from claiming their true mileage because they are afraid of an audit.  True, you should do your best to keep a written record, but if you haven’t been extremely detailed, still utilize an estimate and take the deduction.  I would rather see my client defend the deduction than not take it at all.  As for ‘actual’ expenses, this is for those typically with large trucks or SUVs.  IF you were following my Newsletter in December you may have seen the special Bill and Extension passed by Congress that extended the 179 Depreciation deduction for trucks with a 6ft bed or greater, vans, delivery trucks and RVs.  Don’t forget this opportunity as well if you purchased a vehicle weighing more than 6,000lbs in 2014. If this was you, do your best to track down your fuel, repairs and maintenance for last year if you used the ‘actual’ method.

3. Dining and Entertainment. Again, a highly underutilized expense by small business owners and should be a healthy line item on your tax return.  Please make sure you consider all of your meals last year where you discussed business with a partner, or a potential client, vendor or strategic alliance. If you didn’t keep a receipt, still take the expense. Technically, you don’t need a receipt if it was less than $75, but you still should be able to substantiate it if necessary with a credit card or bank statement and the purpose of the meeting.  Another overlooked fact is that you can write-off dining by yourself when you are traveling.  This has been defined as outside of a normal commute of your home office or place of business and business owners should be diligent in tracking these expenses.  However remember, although you are traveling, all dining and entertainment is still limited to 50% of the full amount. The biggest deduction for food that is for 100% of the cost is that of event food (or otherwise stated, food purchased for your attendees at a presentation you make).  This also includes food purchased for your employees at the office.

4. Office Supplies and Technology.  Every small business owner is regularly buying supplies and upgrading their phone, computers and digital reading devices.  Don’t forget that when you have a small business, the majority of these items can be fully expensed.  Make sure you track them and discuss with your tax advisor which expenses for items should be reduced by some percentage for personal use if necessary.

5. Technology and Telephone.  This is obviously an ever increasing expense as small business owners utilize technology to do business nationwide, if not worldwide.  Many also don’t know that recent case law and IRS rulings allow business owners to write-off 100% of their cell phone expenses, so long as they have at least one dedicated home phone line.  Moreover, make sure to include the cell phones of your family members that work in the business alongside you and need a cell phone for their legitimate roll in the business.

Now with all of these expenses, you need to take into account your overall income, profit and the size of your operations.  Your deductions need to look realistic and common for the type of business you have.  However, if they’re legitimate and you have support, don’t be afraid to take them.  Go for it and just have your records as back up if you need them in the future to justify your expenses.

 

BEST ASSET PROTECTION AND BOTTLED BUSINESS SENSE RADIO

WFBLC Bottled Business Sense - Business in a Bottle LogoWFB Legal Consulting Inc. and the Bottle Business Sense Newsletter proudly present the launch of The Bottled Business Sense Radio Show. The show will launch June 3, 2014. More information will be made available as the show date approaches. However, the show will combine the unique features of Best Asset Protection legal principles in conjunction with the most current media marketing techniques that will grow, promote and sustain your business.

The hosts of the show will be Bill Bernard of WFB Legal Consulting Inc. and Rick Moscoso of R2 Visual Studios. Plan on tuning in to learn how you can apply all of the latest and greatest legal and marketing tools necessary to ensure the longevity of your business.

Is your business protected against the threat of malicious litigation and frivolous lawsuits?  Are you sinking company profits into marketing campaigns that do nothing to contribute to the growth of your business?

The Bottled Business Sense Show will provide practical business perspectives that uniquely emphasize both legal and media marketing strategies to protect and insure the longevity of your business. 

Whether you’re trying to provide a startup business with some level of stability, or an established business with fool-proof asset and estate protection, or simply attempting to get a better return for your business marketing dollars, Bill Bernard and Rick Moscoso will expose potential pitfalls to insure the security and growth of your business, free from unwanted expense and the threat of litigation.

You’ll learn how to implement marketing and protection tools equal to those used by today’s most successful corporations.

BEST ASSET PROTECTION LAWYER FOR BUSINESS AND NEW YEAR GOALS

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NEW YEAR GOALS FOR SMALL BUSINESS OWNERS

GOALS:

1._____________________________________________________

2._____________________________________________________

3._____________________________________________________

Happy New Year and I hope 2014 has been off to phenomenal start for everyone of you! With each new year comes a new set of goals. As humans, we’re constantly aspiring to improve ourselves, whether it’s wanting to lose weight, exercise more, get organized, spend less money, etc. In light of this yearly tradition of creating lists, here are five attainable new year business goals for the small business owner:

1.  Delegate More

When you’re just starting out with your business, money is usually tight and it’s natural to want to tighten your purse strings. However, small business owners are also notorious for having trouble handing over the reigns. Trying to take care of everything yourself can be harmful to both your well being and your business. With only one person in charge of the whole show, there’s only so far you can scale. This year, consider tasks that you can delegate down, such as the countless tasks that are easy to do and don’t require specific expertise. If you’re worried about costs, just remember how much of your valuable, revenue-generating time you’ll be freeing up.  Your business can’t grow when you’re focused on busy work. In addition to delegating down, think about areas of your business that you should delegate up.  These are the tasks that require special knowledge and skills and ones not related to the core wheelhouse of your business. While DIY may seem easier on the wallet in the short term, it’s typically better in the long run to hire a specialist to handle complex issues, such as an, accountant for bookkeeping or taxes or an expert attorney for handling your legal paperwork like incorporation.

2. Get Your Books Ready for Tax Time Early This Year

Are you guilty of waiting until the last minute to organize and file your taxes? Do you find yourself wading through emails, drawers, and your car to find any stray business receipts you can expense? Do you need to try to remember a full year’s mileage expenses on April 13th before tax day? Don’t wait until April to start on your tax forms this year. Start fresh by organizing your books from day one of the new year and start gathering what you need for your prior year’s taxes now (even if that means outsourcing your accounting or signing up for a new cloud-based application).

3. Protect Your Assets with an LLC or Corporation

While legal fine print isn’t the most exciting part of running a business, forming an LLC or Corporation can be critical to your business and personal financial health. These business structures protect your personal assets from any liabilities of the company and provide the BEST ASSET PROTECTION. This means that if your business can’t pay its debts or happens to be sued, your own personal property may be shielded from any judgment. In addition, these formal business structures can improve your tax situation and carry other benefits that you may want to discuss with your CPA or tax advisor. If you’re not quite ready to take the plunge to incorporate, you should at least register your business name with the state. This simple step is known as filing a DBA (Doing Business As or Fictitious Business Name) and it does two things:

  • It makes sure that you’re legally able to use a      business name.
  • Ensures that no one else can use your business name in      your state.

4. Put Your Customer First

As a small business owner, you know you wouldn’t be anywhere if not for your customers. As you move into the new year, put your customers first in all that you do. A small business can stand out in a crowded market by offering impeccable, personal, and customer-centric service. Treat your customers as people, not numbers or sales figures. Listen to your customer’s needs and bend over backwards to make them happy. 

5. Set Aside Time for Yourself

As an entrepreneur, you probably suffer from little separation between your personal and work life. This year, make a point to set aside time for yourself each and every day. Go to the gym, do something you enjoy or just turn off your phone and other devices for a half hour each day. It’s important to recharge your batteries in order to stay focused and motivated throughout the year. A change of scenery can stoke your creativity. Who knows what brilliant plan you’ll dream up when you step outside your daily grind. Sticking to a goal is tough for anyone. The most important thing is to create realistic ones that make sense for you and your business. What are the goals you’ve set for your business in the new year?

Please feel free to reach out and let us know how we can help.

Here’s to a successful and prosperous 2014!  WFB LEGAL CONSULTING, Inc.

OFFER: 10% off any service, excluding Basic setup and filing fees, until January 31, 2014.

BEST ASSET PROTECTION LAWYER FOR BUSINESS

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Set up your business entity before year’s end and make sure you have the BEST ASSET PROTECTION available for your business and personal assets. Get organized and utilize business deductions to lower your taxable income. Having a good business attorney  and a good accountant on retainer, working hand in hand, are two steps you can take to be ready should the unexpected arise. Legal action by customers, suppliers and even employees, as well as tax audits by the IRS–all emphasize the need for iron-clad asset protection and proper tax planning. 

REMEMBER: You don’t have to be in the wrong to be sued–or audited!  

Visit: www.wfblegalconsulting.com

BEST ASSET PROTECTION: DOMESTIC ASSET PROTECTION TRUSTS (DAPT’s)

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Alaska was the first US jurisdiction to enact laws allowing protection for self-settled trusts (in 1997) and was shortly followed by Delaware, Nevada, South Dakota and a few others. These trusts are known as Domestic Asset Protection Trusts (DAPTs). Usually, a DAPT must comply with the following requirements:

The trust must be irrevocable and spendthrift;

At least one resident trustee must be appointed;

Some administration of the trust must be conducted in respective state;

The settlor cannot act as a trustee.

Trusts are generally governed by the laws of the jurisdiction that is designated by the settlor as the governing jurisdiction. There are two exceptions to the general rule, which may create conflicts of law: (i) states will not recognize laws of sister states that violate their own public policy, and (ii) if the trust owns real property, such property will be governed by the law of jurisdiction that is the property’s situs. Additionally, the Full Faith and Credit clause of the Constitution provides that each state must give full faith and credit to the laws of every other state. This means that if a court from another state refuses to recognize the protection of a DAPT and enters a judgment for the creditor, the creditor may be able to enforce the judgment against the trustee of the DAPT, even if that trustee was located in the DAPT jurisdiction. The efficacy of a DAPT may also be challenged under the Supremacy clause of the U.S. Constitution, under the applicable fraudulent transfer statute, or because the settlor retained some prohibited control over the trust.

These trusts should always be supervised by a lawyer for business who is proficient in estate planning law in order to ensure the best asset protection available to the particular estate in question.

BEST ASSET PROTECTION and POWER OF ATTORNEY

Generally speaking, if a principal is still living and capable of managing their own affairs their relatives cannot change the POA. However, if the person becomes incapacitated a General POA is extinguished and the relatives can petition for a guardianship of the person. If there is a Durable POA in effect it remains in effect even after the principal becomes incapacitated but the relatives can petition for a guardianship of the person. If granted, the POA will be extinguished. Moreover, if the principal is deceased the POA is extinguished and the next of kin must probate the estate by petitioning the court.

Presented by: BEST ASSET PROTECTION SERVICES GROUP at WFB Legal Consulting, Inc.: Lawyer For Business

Please be advised that the information in this blog is for general public informational use only and does not establish an-attorney-client relationship.

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