I just read an article about many Americans particularly self-employed professionals are not able to make their quarterly estimated taxes. This has been a major problem over the last couple of years. Many self-employed professionals have been hit hard during this recession. Without adequate capital, many have failed to pay their fair share of employment or payroll taxes. The IRS is a jealous creditor and not a creditor that you want against you.
With advanced Asset Protection, you can protect your assets against potential liabilities such as IRS, Credit Card Companies, or Even Mortgage Companies. There is a law known as Fraudulent Convenyance, which means that you cannot hinder, delay, or defraud a creditor. Hence, the proper time to asset protection plan is prior to these potential litigation matters.
With the IRS, they have a huge leverage of you especially if you own a home. They can place a lien on your home and Levy your bank accounts or worse put your business into involuntarily bankruptcy. These are very serious matters where you will loose sleep over.
With proper Asset Protection, you can avoid liens being placed against your House & become judgment proof. For a free consultation, call Sean Robertson 312-498-6080 or RobertsonLawGroup@gmail.com.
Tuesday, April 14, 2009
Vermont & Iowa Legalize Gay Marriage: No Federal Tax Relief
State Supreme Courts & State Legislatures are slowly legalizing civil unions and gay marriage. Recently, Vermont and Iowa legalized gay marriage and the key question is how does this impact you and your partner?
In Illinois, gay marriage is not recognized and therefore for estate purposes, you cannot inherit under intestate law. Intestate law is the law which says that your spouse gets half of your property and your children get half of your property if you die without a will. Your partner is not your spouse according to Illinois law and therefore, you have no rights under State of Illinois law.
What happens if you get married in Vermont or Iowa? Great idea since Iowa is close to Illinois. The Defense of Marriage Act enacted into law by President Bill Clinton says that each state has the right to make their own decisions regarding marriage. Thus, Illinois law does not assume that you and your partner are spouses or even have the privileges typically associated with spouses.
In Illinois, you and your partner should consult an estate planning attorney. If you create a Living Trust or a Will (in some cases), you can grant your Partner the legal authority to visit you in the hospital or inherit your wealth. Second, under Federal Law for Estate Tax Purposes, your Partner is not considered your Spouse. Therefore, gay couples and partners do not get favorable tax treated similar to married couples.
Sean L. Robertson is an Wealth Preservation Attorney concentrating in Wills, Trusts, Estate Planning, Elder, & Asset Protection law and can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com.
In Illinois, gay marriage is not recognized and therefore for estate purposes, you cannot inherit under intestate law. Intestate law is the law which says that your spouse gets half of your property and your children get half of your property if you die without a will. Your partner is not your spouse according to Illinois law and therefore, you have no rights under State of Illinois law.
What happens if you get married in Vermont or Iowa? Great idea since Iowa is close to Illinois. The Defense of Marriage Act enacted into law by President Bill Clinton says that each state has the right to make their own decisions regarding marriage. Thus, Illinois law does not assume that you and your partner are spouses or even have the privileges typically associated with spouses.
In Illinois, you and your partner should consult an estate planning attorney. If you create a Living Trust or a Will (in some cases), you can grant your Partner the legal authority to visit you in the hospital or inherit your wealth. Second, under Federal Law for Estate Tax Purposes, your Partner is not considered your Spouse. Therefore, gay couples and partners do not get favorable tax treated similar to married couples.
Sean L. Robertson is an Wealth Preservation Attorney concentrating in Wills, Trusts, Estate Planning, Elder, & Asset Protection law and can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com.
Estate Lessons: What Can The White House Dog "Bo" Can Teach Us?
You may be wondering what can the new White House Dog "Bo" teach us about estate planning. For many families, their dog(s) are part of their family and should be part of their estate plan. Pet Trusts are Trust designed for Pets such as "Bo". In Illinois, Pet Trusts are legal and a proper estate planning technique.
Obviously, if you are going to estate plan for your Pet, you should also plan for guardianship of your minor children. A guardian is a person that is legally responsible for your minor children such as paying school expenses, decided which school your children will attend, and the type of punishment or reward your children will have.
How Do You Pick an Executor or Trustee? An executor is in charge of implementing your Will and a Trustee is legally responsible for following your written wishes via your Revocable "Living" Trust. These are factors to consider:
1. Responsible with Money;
2. Similar Values as You or You Would Want;
3. School District & Neighborhood of Prospective Guardian;
4. Follows Rules;
5. Plays Well with Others;
6. Honest & Ethical;
7. Respected by Beneficiaries
Sean L. Robertson, Esq. (Tax) is a Wealth Preservation Attorney that concentrates in Wills, Trusts, Elder Law, Probate, & Asset Protection law. Sean Robertson can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com. Check out www.chicagoridgelaw.blogspot.com for more informational articles or www.RobertsonLawGroup.com/blog.htm.
Key Words: Pet Trusts, Elderly, Senior, Wills, Trusts, Executor, Trustee, & Probate
Obviously, if you are going to estate plan for your Pet, you should also plan for guardianship of your minor children. A guardian is a person that is legally responsible for your minor children such as paying school expenses, decided which school your children will attend, and the type of punishment or reward your children will have.
How Do You Pick an Executor or Trustee? An executor is in charge of implementing your Will and a Trustee is legally responsible for following your written wishes via your Revocable "Living" Trust. These are factors to consider:
1. Responsible with Money;
2. Similar Values as You or You Would Want;
3. School District & Neighborhood of Prospective Guardian;
4. Follows Rules;
5. Plays Well with Others;
6. Honest & Ethical;
7. Respected by Beneficiaries
Sean L. Robertson, Esq. (Tax) is a Wealth Preservation Attorney that concentrates in Wills, Trusts, Elder Law, Probate, & Asset Protection law. Sean Robertson can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com. Check out www.chicagoridgelaw.blogspot.com for more informational articles or www.RobertsonLawGroup.com/blog.htm.
Key Words: Pet Trusts, Elderly, Senior, Wills, Trusts, Executor, Trustee, & Probate
Monday, April 13, 2009
Asset Protection Article
The Family Limited Partnership > Ownership by Spouses
by RJ Mintz
I wanted to pass this article onto the general public because I believe it is an informative article speaking about Family Limited Partnerships. Sean L. Robertson, Esq. is a Wealth Preservation Attorney that concentrates in Wills, Trusts, Estate Planning, Probate, & Asset Protection laws. Sean Robertson may be reached at 312 498 6080 or RobertsonLawGroup@gmail.com.
by RJ Mintz
I wanted to pass this article onto the general public because I believe it is an informative article speaking about Family Limited Partnerships. Sean L. Robertson, Esq. is a Wealth Preservation Attorney that concentrates in Wills, Trusts, Estate Planning, Probate, & Asset Protection laws. Sean Robertson may be reached at 312 498 6080 or RobertsonLawGroup@gmail.com.
Ownership by Spouses
The first alternative is that H and W (or a single individual) hold all or most of the limited partnership interests. The apparent advantage of this arrangement is that it is attractive and convenient. Control is maintained through the General Partnership and equity is preserved through the ownership of the limited partnership interests. This arrangement is generally consistent with the goals of H and W not to part with assets in any meaningful way. The disadvantages of this format are that the interests retained by H and W are subject to a charging order or may be seized by a successful creditor, eliminating any intended asset protection benefits. This remedy is known as a foreclosure and may be particularly powerful in the hands of a knowledgeable plaintiff.
Foreclosure of FLP Interest
We have previously discussed the fact that a judgment creditor of a partner can obtain a charging order against the debtor’s partnership interest. The charging order gives the debtor a right to any distributions from the partnership to the debtor partner and remains in effect until the creditor has been paid in full or until the time limit for collecting the judgment has expired (usually 20 years)
In addition to the charging order remedy, most states allow a creditor to foreclose on the debtor partner's interest. (Hellman v. Anderson 233 Cal. App. 3d 840; California Corporations Code 17302 (Foreclosure of LLC interests)). A foreclosure means that the court allows a seizure and sale of the debtor's partnership interest. Although the purchaser of the partnership interest may be restricted in the exercise of any management rights, he would be entitled to the debtor's share of distributions without regard to the amount of the judgment.
For example, a Husband and Wife form an FLP with property worth $1 million. Some years later there is a judgment against the couple for $200,000. If the creditor's remedy is limited to a charging order, he would be entitled to distributions equal to the amount of the judgment. When and if he is paid this amount (plus interest) the creditor's judgment is satisfied. A creditor who is permitted to foreclose on the partnership interest gets more than that. He is legally entitled to distributions without regard to the amount of the judgment. He could ultimately get paid the full $1 million of value.
The timing and fact of any distributions will be subject to legal maneuvering and tactics, but the possibility of a potentially disastrous result must be carefully considered. Further, the mere existence of the foreclosure remedy dramatically increases the negotiating leverage of the plaintiff in any situation in which the value of FLP assets exceeds the amount of the judgment. The threat of a foreclosure by a knowledgeable plaintiff alters the relative bargaining position of the parties by raising the specter of a loss for the defendant beyond even the amount of the judgment. Pre-litigation and pre-trial negotiations would be impacted by the possibility of a remedy that could cost the defendant more than the amount of a potential judgment. The defendant in this situation would have to liquidate the FLP, if possible (unwinding the asset protection plan) or would be forced to settle on the most unfavorable terms.
In light of these potential problems, we can conclude that ownership of FLP interests (or LLC interests) in an unprotected form by an individual, Husband and Wife, or a living trust, creates significant danger and risk of foreclosure and loss. In some circumstance that amount of the loss may even exceed the amount of a potential judgment.
The crucial element of asset protection planning is creating the proper strategy to hold interests in an FLP, LLC, corporation or any other entity in the structure.
What Happens to Real Estate When One Spouse Dies?
Welcome to this Blog by Robertson Law Group, P.C., 9923 S. Ridgeland Avenue, Suite 99, Chicago Ridge, Illinois 60415, (312) 498-6080.
Today, I received a phone call from a widow because she received a payment of $800 as a refund. What is the problem? The refund check is in her husband's name, who is deceased. Her question was what do I do?
Probating Real Estate or Not?
When the first spouse dies, living spouses often times do not think about changing their real estate deeds to reflect that one spouse is deceased. In my prospect's example, her simple question about a $800 refund was really a question of whether we must establish a probate estate or will a simple small estate affidavit be sufficient? In her case, her and her husband's name were titled in both of their names as "Joint Tenants". In Illinois, Joint Tenants is a way of owning real estate with your spouse where as if one spouse deceases, the other spouse's one-half interest immediately transfers to the surviving spouse. Thus, in our example, my prospect must not undergo probate court because as a matter of law, she owns her home in her personal name only due to Joint Tenancy with Right of Survivorship. Therefore, automatically upon her husband's death, his interest was transferred to her.
What happens when Surviving Spouse dies?
The children, brothers, or sisters must probate the house and hire an attorney and undergo a legal process called probate court. Probate court is a court that hears inheritance issues such as who is the rightful owner of the parent's home when a will was not made. In Illinois, when one does not complete a will, the property must go through probate court and Illinois law assumes that the surviving spouse (if any) gets one-half of the property and the children will split the other one-half of property. If there is no surviving spouse like our example above, than all the children will split the profits equally.
How Much Does Probate Costs?
The answer depends on the complexity of the family relationships and whether the family gets along with one another. A typical probate estate may costs from $3,000 to $6,000 or more depending on the assets and nature of the probate estate case. The fees are generally around $600 to $1,000. Obviously, if any issue such as heirship is contested, a probate estate may costs in excess of $15,000 to $100,000s in attorney's fees and costs.
This Article is written by Sean L. Robertson, an attorney that concentrates in wills, trusts, probate, guardianship, corporate and asset protection law. Simply put, Sean is an estates and trusts and corporate attorney.
Sean L. Robertson, Esq.
RobertsonLawGroup
9923 South Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415
w) 312 498 6080
e) RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Key words: Chicago Ridge, Chicago, Southside of Chicago, Joliet, Will County, Oak Lawn, Bridgeview, South Loop (Chicago), Homer Glen, New Lenox, Orland Park, Wills, Trusts, Probate, Power of Attorney (Property & Healthcare)
Today, I received a phone call from a widow because she received a payment of $800 as a refund. What is the problem? The refund check is in her husband's name, who is deceased. Her question was what do I do?
Probating Real Estate or Not?
When the first spouse dies, living spouses often times do not think about changing their real estate deeds to reflect that one spouse is deceased. In my prospect's example, her simple question about a $800 refund was really a question of whether we must establish a probate estate or will a simple small estate affidavit be sufficient? In her case, her and her husband's name were titled in both of their names as "Joint Tenants". In Illinois, Joint Tenants is a way of owning real estate with your spouse where as if one spouse deceases, the other spouse's one-half interest immediately transfers to the surviving spouse. Thus, in our example, my prospect must not undergo probate court because as a matter of law, she owns her home in her personal name only due to Joint Tenancy with Right of Survivorship. Therefore, automatically upon her husband's death, his interest was transferred to her.
What happens when Surviving Spouse dies?
The children, brothers, or sisters must probate the house and hire an attorney and undergo a legal process called probate court. Probate court is a court that hears inheritance issues such as who is the rightful owner of the parent's home when a will was not made. In Illinois, when one does not complete a will, the property must go through probate court and Illinois law assumes that the surviving spouse (if any) gets one-half of the property and the children will split the other one-half of property. If there is no surviving spouse like our example above, than all the children will split the profits equally.
How Much Does Probate Costs?
The answer depends on the complexity of the family relationships and whether the family gets along with one another. A typical probate estate may costs from $3,000 to $6,000 or more depending on the assets and nature of the probate estate case. The fees are generally around $600 to $1,000. Obviously, if any issue such as heirship is contested, a probate estate may costs in excess of $15,000 to $100,000s in attorney's fees and costs.
This Article is written by Sean L. Robertson, an attorney that concentrates in wills, trusts, probate, guardianship, corporate and asset protection law. Simply put, Sean is an estates and trusts and corporate attorney.
Sean L. Robertson, Esq.
RobertsonLawGroup
9923 South Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415
w) 312 498 6080
e) RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Key words: Chicago Ridge, Chicago, Southside of Chicago, Joliet, Will County, Oak Lawn, Bridgeview, South Loop (Chicago), Homer Glen, New Lenox, Orland Park, Wills, Trusts, Probate, Power of Attorney (Property & Healthcare)
Tuesday, April 7, 2009
Asset Protection Lessons From Financial Crisis
In today's economy, we are witnessing one unit of a company taking the other units onto the brink of bankruptcy. For example, AIG is a prime example of one or several divisions of a company can bring other profitable divisions on the brink of bankruptcy.
Why Asset Protection?
Asset Protection is vital because it protects your other valuable assets. Simply stated, in the AIG situation above, Asset Protection insulates the profitable divisions from the losses of the unprofitable divisions. This is important because many times business owners set up a satellite location and assume that that location will be profitable like their main location. Hence, unfortunately, location, luck, and many other factors play a considerable role in determining business success. Often times, business owners must have a strategy to mitigate their losses.
Who Are Good Candidates for Asset Protection?
Business Owners, Doctors, Dentists, Self Employed Individuals, and High Net Worth Families or Individuals are excellent candidates for Asset Protection. Mostly because society assumes these individuals have money and often times, clients perceive injuries to have occured against them and want to sue to regain what they have lost.
For more information on Wills, Trusts, Asset Protection, & Estate Planning, please call Sean Robertson at 312 498 6080 or RobertsonLawGroup@gmail.com.
Robertson Law Group
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, IL 60415
w) 312 498 6080 f) 312 377 2480
e) RobertsonLawGroup@gmail.com
Why Asset Protection?
Asset Protection is vital because it protects your other valuable assets. Simply stated, in the AIG situation above, Asset Protection insulates the profitable divisions from the losses of the unprofitable divisions. This is important because many times business owners set up a satellite location and assume that that location will be profitable like their main location. Hence, unfortunately, location, luck, and many other factors play a considerable role in determining business success. Often times, business owners must have a strategy to mitigate their losses.
Who Are Good Candidates for Asset Protection?
Business Owners, Doctors, Dentists, Self Employed Individuals, and High Net Worth Families or Individuals are excellent candidates for Asset Protection. Mostly because society assumes these individuals have money and often times, clients perceive injuries to have occured against them and want to sue to regain what they have lost.
For more information on Wills, Trusts, Asset Protection, & Estate Planning, please call Sean Robertson at 312 498 6080 or RobertsonLawGroup@gmail.com.
Robertson Law Group
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, IL 60415
w) 312 498 6080 f) 312 377 2480
e) RobertsonLawGroup@gmail.com
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