ROBERTSON LAW GROUP, LLC:
ASSET PROTECTION LAW FIRM
Attorney and Counselor of Law
312-498-6080
RobertsonLawGroup@gmail.com
PLANNED GIVING
Hiring our law firm will be your first step towards successfully planning to protect your loved ones during your lifetime and beyond. Your package will include several important legal documents that will assist you in accomplishing your ideal giving situation. These documents are a revocable living trust, durable power of attorney for property, durable power of attorney for healthcare, and a pour-over will. Below is an explanation of what each document protects and how it will be utilized during your estate planning process.
Revocable Living Trust: You are a trustor (person who grants or bequests property interests), who will hold legal title to all bequeathed interests for the benefits of those you name (beneficiaries) to receive your bequest. The trustor creates his/her intent to pass his/her property interests (bequests) through this document (trust). The trustor shall name a person to manage the trust once he/she is deceased this person is called a trustee. A revocable trust is a right reserved by the trustor to change, terminate and recover any property interests that have been included in the trust document(s) without upsetting any loved ones or involving a long court process.
Durable Power of Attorney for Property: A power permitted by the trustor that authorizes an agent (whom ever the trustor names) to transact business for the trustor. This authorization would only become effective upon the trustor’s incapacitation or incompetence. The power would consist of making financial decisions, paying the trustor’s debts, and continuing to meet the trustor’s daily financial obligations.
Power of Attorney for Healthcare: A power permitted by the trustor that authorizes an agent (whom ever the trustor names) to transact healthcare decisions for the trustor. This authorization becomes effective upon the trustor’s disability, incapacitation, or incompetence. This kind of document would have made the Terri Schiavo situation more of a private matter between her and her loved ones and not the court system.
Pour-Over Will: This documents works like a normal will, but in this situation most of your assets of your estate are included in the trust; therefore this document will explain what happens to property that does not make it into the trust. For example, personal property such as clothing or a car may not make it into a trust. These simple personal items shall be distributed by this document (will).
Living Will: Living will usually covers specific directives as to the course of treatment that is to be taken by caregivers, or, in particular, in some cases forbidding treatment and sometimes also food and water, should the principal be unable to give informed consent ("individual health care instruction") due to incapacity. Works in combination with Power
Sunday, June 7, 2009
Top 10 Estate Planning Mistakes for Physicians & Dentists
Robertson Law Group, LLC
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415
w) 312-498-6080 f) 312-377-2480
RobertsonLawGroup@gmail.com
www.robertsonlawgroup.com
blog: www.assetprotectionlaw.blogspot.com
SERVING COOK, DUPAGE, AND WILL COUNTIES
TEN ESTATE PLANNING MISTAKES
FOR PHYSICIANS & DENTISTS
1. Titling property jointly with your children as a substitute for a will.
With a will or Revocable Living Trust (Trust), you make contingencies in case your initial beneficiaries listed are either disabled or deceased. Having a second or third contingent beneficiary is crucial because it helps to avoid probate court. Additionally, titling your personal residence jointly can result in partial loss of the capital gain exclusion if it is sold before your death or result in a gift tax (50% tax rate).
2. Failing to plan for the possibility of children getting divorced or having problems with creditors.
Parents often regret having made outright gifts to their children when the child subsequently divorces and the ex-son or daughter-in-law is awarded an interest in the gifted property by a court, or when property is taken pursuant to a legal creditor judgment against the child. These problems can be reduced through Trusts because Trusts have a spendthrift provision, which prevents the inherited money being subject to a divorce or creditor of the surviving beneficiary.
3. Underestimating Family Conflicts Caused By An Inheritance.
Any person setting up a will or Trust should strongly consider the family dynamics when considering who should be a Trustee and who should inherit their estate. For example, if A dies and has a surviving spouse, which is the result of a 2nd marriage and A has two children from a first marriage, this family will likely have a serious problem. If the estate is not properly structured, the 2nd husband and A’s kids from the first marriage will likely dispute who is entitled to plan the funeral, inherit from the estate, and whether the 2nd husband should continue living in the residence that A and the surviving spouse lived in together.
4. Failing to plan for the possibility of a guardian for your children if they are under age 18.
Many families fail to plan who they will choose to be the guardian over their minor children. A couple factors should be considered: a) who is your first, second, and third choice for guardian over your minor children if you and your spouse are deceased; b) should one or two guardians manage the finances and parental responsibilities; c) what happens if your choice of guardian is divorced and unmarried; and d) what school district and lifestyle will your children have if you choose certain people as guardians.
5. Failing to plan for children that you do not consider to be your children or grandchildren.
Families (especially high net worth) often ask an estate planning attorney to eliminate language in their wills or Trusts that state that they (person creating will or Trust) want to provide for any unborn or adopted children not listed in the will or Trust. Many professionals are concerned about illegitimate children or grandchildren claiming a right to a family inheritance that the family was unaware of.
6. Underestimating the true value of your estate for Federal Estate Tax Purposes.
Many people are unaware that life insurance proceeds are includable in their taxable estates upon death. The estate tax unified credit is currently $2 million and if properly structured, an estate tax can be totally eliminated or greatly reduced with some simple planning techniques.
7. Selling real estate without considering the benefits of “step up” in tax basis upon death.
For example, A owns two real estate properties and is 85 years of age. A is considering selling the property upon her death. If A sells the real estate properties upon her death, A may pay a substantial capital gain’s tax as a consequence of having a low tax basis in A’s real estate properties. If A does not sell the real estate properties and A deceases, A’s family gets a “step up” in tax basis in the real estate property which eliminates the capital gain’s tax on the real estate properties.
8. Protecting loved ones from a substantial inheritance.
One benefit of a Trust is the creator of the Trust can put restrictions on use of a beneficiary’s use of Trust’s assets to protect a beneficiary from their inability to manage money, protect a beneficiary from immaturity, and guaranteeing that a beneficiary will not spend all their inheritance by selecting a Trustor that is good with managing money. For instance, one always should strongly consider how to protect their children and their children’s lifestyle such as choice of educational institutions if the guardian is irresponsible with money.
9. Failing to plan for incapacity or disability.
Families should have appropriate powers of attorney for property and healthcare to appoint a guardian or conservator to act on their behalf if you become disabled or unable to make healthcare or financial decisions for yourself. For instance, if you became disabled today, would you be able to pay your bills or continue running your business. If you have business partners, would your business be able to withstand the absence of a business partner for a substantial amount of time without draining the resources of your business. Do you have an adequate buy/sell written partnership agreement and the proper funding vehicles to fund the buy/sell agreement in case of a disability or incapacity.
10. Failing to review and update your estate plan every couple of years.
Law changes along with personal, family and business changes make it necessary to update your will or Trust. For a lot of families, a Trust is more appropriate than a will and seeking out an estate planning expert can prevent your family from conflicts and substantial legal fees and costs associated with probate court. A second opinion is always good because a lot of attorneys are not seasoned estate planning attorneys and fail to understand the complicated family conflicts and ever changing estate tax laws. For example, have you had a baby, moved to a different state, accumulated additional assets, or been married or recently divorced? If you have had a substantial change in your family or personal life, you should strongly consider scheduling an appointment with an estate planning attorney.
Sean L. Robertson is a Wealth Preservation attorney concentrating in Asset Protection, Estate Planning, and Physician Legal Planning. Sean represents Physicians, Healthcare Groups, and Dentists. Sean can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com
Key words: Wills, Trusts, Estate Planning, Dentists, Powers of Attorney (Property & Healthcare), Living Wills, Physician, Asset Protection
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415
w) 312-498-6080 f) 312-377-2480
RobertsonLawGroup@gmail.com
www.robertsonlawgroup.com
blog: www.assetprotectionlaw.blogspot.com
SERVING COOK, DUPAGE, AND WILL COUNTIES
TEN ESTATE PLANNING MISTAKES
FOR PHYSICIANS & DENTISTS
1. Titling property jointly with your children as a substitute for a will.
With a will or Revocable Living Trust (Trust), you make contingencies in case your initial beneficiaries listed are either disabled or deceased. Having a second or third contingent beneficiary is crucial because it helps to avoid probate court. Additionally, titling your personal residence jointly can result in partial loss of the capital gain exclusion if it is sold before your death or result in a gift tax (50% tax rate).
2. Failing to plan for the possibility of children getting divorced or having problems with creditors.
Parents often regret having made outright gifts to their children when the child subsequently divorces and the ex-son or daughter-in-law is awarded an interest in the gifted property by a court, or when property is taken pursuant to a legal creditor judgment against the child. These problems can be reduced through Trusts because Trusts have a spendthrift provision, which prevents the inherited money being subject to a divorce or creditor of the surviving beneficiary.
3. Underestimating Family Conflicts Caused By An Inheritance.
Any person setting up a will or Trust should strongly consider the family dynamics when considering who should be a Trustee and who should inherit their estate. For example, if A dies and has a surviving spouse, which is the result of a 2nd marriage and A has two children from a first marriage, this family will likely have a serious problem. If the estate is not properly structured, the 2nd husband and A’s kids from the first marriage will likely dispute who is entitled to plan the funeral, inherit from the estate, and whether the 2nd husband should continue living in the residence that A and the surviving spouse lived in together.
4. Failing to plan for the possibility of a guardian for your children if they are under age 18.
Many families fail to plan who they will choose to be the guardian over their minor children. A couple factors should be considered: a) who is your first, second, and third choice for guardian over your minor children if you and your spouse are deceased; b) should one or two guardians manage the finances and parental responsibilities; c) what happens if your choice of guardian is divorced and unmarried; and d) what school district and lifestyle will your children have if you choose certain people as guardians.
5. Failing to plan for children that you do not consider to be your children or grandchildren.
Families (especially high net worth) often ask an estate planning attorney to eliminate language in their wills or Trusts that state that they (person creating will or Trust) want to provide for any unborn or adopted children not listed in the will or Trust. Many professionals are concerned about illegitimate children or grandchildren claiming a right to a family inheritance that the family was unaware of.
6. Underestimating the true value of your estate for Federal Estate Tax Purposes.
Many people are unaware that life insurance proceeds are includable in their taxable estates upon death. The estate tax unified credit is currently $2 million and if properly structured, an estate tax can be totally eliminated or greatly reduced with some simple planning techniques.
7. Selling real estate without considering the benefits of “step up” in tax basis upon death.
For example, A owns two real estate properties and is 85 years of age. A is considering selling the property upon her death. If A sells the real estate properties upon her death, A may pay a substantial capital gain’s tax as a consequence of having a low tax basis in A’s real estate properties. If A does not sell the real estate properties and A deceases, A’s family gets a “step up” in tax basis in the real estate property which eliminates the capital gain’s tax on the real estate properties.
8. Protecting loved ones from a substantial inheritance.
One benefit of a Trust is the creator of the Trust can put restrictions on use of a beneficiary’s use of Trust’s assets to protect a beneficiary from their inability to manage money, protect a beneficiary from immaturity, and guaranteeing that a beneficiary will not spend all their inheritance by selecting a Trustor that is good with managing money. For instance, one always should strongly consider how to protect their children and their children’s lifestyle such as choice of educational institutions if the guardian is irresponsible with money.
9. Failing to plan for incapacity or disability.
Families should have appropriate powers of attorney for property and healthcare to appoint a guardian or conservator to act on their behalf if you become disabled or unable to make healthcare or financial decisions for yourself. For instance, if you became disabled today, would you be able to pay your bills or continue running your business. If you have business partners, would your business be able to withstand the absence of a business partner for a substantial amount of time without draining the resources of your business. Do you have an adequate buy/sell written partnership agreement and the proper funding vehicles to fund the buy/sell agreement in case of a disability or incapacity.
10. Failing to review and update your estate plan every couple of years.
Law changes along with personal, family and business changes make it necessary to update your will or Trust. For a lot of families, a Trust is more appropriate than a will and seeking out an estate planning expert can prevent your family from conflicts and substantial legal fees and costs associated with probate court. A second opinion is always good because a lot of attorneys are not seasoned estate planning attorneys and fail to understand the complicated family conflicts and ever changing estate tax laws. For example, have you had a baby, moved to a different state, accumulated additional assets, or been married or recently divorced? If you have had a substantial change in your family or personal life, you should strongly consider scheduling an appointment with an estate planning attorney.
Sean L. Robertson is a Wealth Preservation attorney concentrating in Asset Protection, Estate Planning, and Physician Legal Planning. Sean represents Physicians, Healthcare Groups, and Dentists. Sean can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com
Key words: Wills, Trusts, Estate Planning, Dentists, Powers of Attorney (Property & Healthcare), Living Wills, Physician, Asset Protection
Friday, June 5, 2009
Basic Estate Planning for Seniors
“BASIC ESTATE PLANNING FOR SENIORS”
Will vs. Revocable Living Trust
A will is a legal document, which distributes your property upon your death. A will is simple and inexpensive. A Revocable Living Trust is a legal document, which acts similar to a Will in distributing your property with minimal hassle. Generally, a Will involves hassle.
Probate Court: Why Wills Do Not Avoid Probate Court?
A Will is public information and must be filed with a court. For example, Sam Smith aged 70 years old is deceased and left a Will. Sam Smith’s heirs must file Sam’s Will with Probate Court in the County where Sam lived. Unlike a Will, a Revocable Living Trust (hereinafter referred to as “Trust”) if planned correctly involves no court involvement and passes one’s assets quickly and easily upon death or incapacity. The second difference between a Will and a Trust is that a Trust plans for incapacity such as Alzheimers, dementia, and strokes. Seniors must be concerned about long-term care issues and incapacity planning is more vital now than planning for one’s transfer of assets upon death. An estimated fifty (50) percent or more Seniors are facing long-term care issues.
Unlike a Will, a Trust plans for incapacity and death. For instance, Sam Smith has a stroke and is unable to manage his healthcare concerns and finances. In this example, Sam Smith’s family members must either have a valid power of attorney (healthcare and property) or face Guardianship Court. Additionally, your loved one’s must undergo a probate or court procedure in every state where you own real estate. This creates a burden upon your family and is expensive and time consuming. Generally, a probate proceeding takes a minimum of nine (9) months to several years. More importantly, court involvement creates family conflict because of Will contests. Attorneys and Executors must mail notices to potential heirs involving Probate Court unlike a Trust. A Trust is private and is typically a secret document with only beneficiaries knowing the Trust’s contents and assets.
Guardianship Court & Incapacity Planning
Guardianship Court is a type of court that determines whether disabled adults are incapacitated and administers a process in choosing a Guardian to manage their financial matters and healthcare concerns. With a Trust, one’s assets such as their primary home, checking/savings accounts, certificate of deposits and any other assets are titled in their Trust’s name. Many people add relatives to their accounts or house deed, but this is ineffective because their relatives may have lawsuits and other legal matters that could jeopardize a senior’s assets. In this financial crisis, lawsuits, judgments, and bankruptcy are major concerns. Second, relatives and friends die and complicate a senior’s life.
Powers of Attorney for Property & Healthcare
There are two types of Powers of Attorney: Property & Healthcare. A Power of Attorney for Property appoints an agent or successor agent(s) to manage one’s finances in case of incapacity. It is highly recommended to have multiple agents in case your original agent is unavailable, deceased, or incapacitated. An Agent is empowered to make financial decisions for the incapacitated adult. The second type of Power of Attorney is a Power of Attorney for Healthcare. In a Power of Attorney for Healthcare, you state your wishes in case you are unable to make healthcare decisions.
POWER OF ATTORNEY VS. LIVING WILL
A living will is an advanced healthcare directive informing your doctor how you want them to proceed in case of an emergency. A Power of Attorney is much broader than a Living Will and it instructs your physician how to proceed in a medical emergency and appoints an Agent (your loved one) to make healthcare decisions for you. Thus, unlike a living will, you appoint an Agent to consult with your physicians and family members and make healthcare decisions as you have instructed them to do.
Conclusion
In general, a will is sufficient for somebody that does not own any real estate and have limited assets. In contrasts, a Revocable Living Trust is generally better for Seniors with a house and modest to large assets. At a minimum, Seniors should have a Power of Attorney for Property & Healthcare in combination with a Will and/or Revocable Living Trust.
Sean Robertson is Principal of Robertson Law Group, LLC and he concentrates in Elder, Wills & Trusts, Probate & Guardianship, and Asset Protection for Seniors & Adult Disabled persons. Sean can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com. Sean has a nationwide Elder law, Estate Planning, & Asset Protection law practice. Sean has his website at www.robertsonlawgroup.com.
Will vs. Revocable Living Trust
A will is a legal document, which distributes your property upon your death. A will is simple and inexpensive. A Revocable Living Trust is a legal document, which acts similar to a Will in distributing your property with minimal hassle. Generally, a Will involves hassle.
Probate Court: Why Wills Do Not Avoid Probate Court?
A Will is public information and must be filed with a court. For example, Sam Smith aged 70 years old is deceased and left a Will. Sam Smith’s heirs must file Sam’s Will with Probate Court in the County where Sam lived. Unlike a Will, a Revocable Living Trust (hereinafter referred to as “Trust”) if planned correctly involves no court involvement and passes one’s assets quickly and easily upon death or incapacity. The second difference between a Will and a Trust is that a Trust plans for incapacity such as Alzheimers, dementia, and strokes. Seniors must be concerned about long-term care issues and incapacity planning is more vital now than planning for one’s transfer of assets upon death. An estimated fifty (50) percent or more Seniors are facing long-term care issues.
Unlike a Will, a Trust plans for incapacity and death. For instance, Sam Smith has a stroke and is unable to manage his healthcare concerns and finances. In this example, Sam Smith’s family members must either have a valid power of attorney (healthcare and property) or face Guardianship Court. Additionally, your loved one’s must undergo a probate or court procedure in every state where you own real estate. This creates a burden upon your family and is expensive and time consuming. Generally, a probate proceeding takes a minimum of nine (9) months to several years. More importantly, court involvement creates family conflict because of Will contests. Attorneys and Executors must mail notices to potential heirs involving Probate Court unlike a Trust. A Trust is private and is typically a secret document with only beneficiaries knowing the Trust’s contents and assets.
Guardianship Court & Incapacity Planning
Guardianship Court is a type of court that determines whether disabled adults are incapacitated and administers a process in choosing a Guardian to manage their financial matters and healthcare concerns. With a Trust, one’s assets such as their primary home, checking/savings accounts, certificate of deposits and any other assets are titled in their Trust’s name. Many people add relatives to their accounts or house deed, but this is ineffective because their relatives may have lawsuits and other legal matters that could jeopardize a senior’s assets. In this financial crisis, lawsuits, judgments, and bankruptcy are major concerns. Second, relatives and friends die and complicate a senior’s life.
Powers of Attorney for Property & Healthcare
There are two types of Powers of Attorney: Property & Healthcare. A Power of Attorney for Property appoints an agent or successor agent(s) to manage one’s finances in case of incapacity. It is highly recommended to have multiple agents in case your original agent is unavailable, deceased, or incapacitated. An Agent is empowered to make financial decisions for the incapacitated adult. The second type of Power of Attorney is a Power of Attorney for Healthcare. In a Power of Attorney for Healthcare, you state your wishes in case you are unable to make healthcare decisions.
POWER OF ATTORNEY VS. LIVING WILL
A living will is an advanced healthcare directive informing your doctor how you want them to proceed in case of an emergency. A Power of Attorney is much broader than a Living Will and it instructs your physician how to proceed in a medical emergency and appoints an Agent (your loved one) to make healthcare decisions for you. Thus, unlike a living will, you appoint an Agent to consult with your physicians and family members and make healthcare decisions as you have instructed them to do.
Conclusion
In general, a will is sufficient for somebody that does not own any real estate and have limited assets. In contrasts, a Revocable Living Trust is generally better for Seniors with a house and modest to large assets. At a minimum, Seniors should have a Power of Attorney for Property & Healthcare in combination with a Will and/or Revocable Living Trust.
Sean Robertson is Principal of Robertson Law Group, LLC and he concentrates in Elder, Wills & Trusts, Probate & Guardianship, and Asset Protection for Seniors & Adult Disabled persons. Sean can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com. Sean has a nationwide Elder law, Estate Planning, & Asset Protection law practice. Sean has his website at www.robertsonlawgroup.com.
Friday, May 22, 2009
Effective Estate Planning Without Litigation
Effective Estate Planning Without Litigation
Many attorneys can prepare wills and trusts, but most attorneys are ill equipped to set your will or trust up in a manner that eliminates or minimizes conflicts within your own family. A common question or statement is "my family would never fight over an estate issue." Estate conflicts are normal and arise due to one person's loss or gain is another person's gain or loss. Thus, certain family members feel entitled to an inheritance or feel that they were wronged when they do not get their inheritance.
One effective estate planning tool to avoid litigation is privacy. When documents are public and within the public domain, it is difficult to avoid litigation in many cases. Wills are typical examples of documents that are public record. Wills are commonly litigated because one person is hurt by their lack of inheritance. Typically, this person was disinherited or feels that their sibling buttered their mother or father up and coerced them into signing their will and assets over to this person.
A Revocable Living Trust is a document where you prepare in an attorney's office and it is a private document. The only people who are entitled to see this document are the beneficiaries. Privacy is important in reducing disputes because unlike Wills, which must be probated, a half-way smart attorney would not send an heir that may dispute the validity of the document a certified letter from an attorney. In many cases, when a person gets a certified letter from an attorney, they hire an attorney. This attorney advises his or her client that they have a case. Hence, litigation arises.
Another way to avoid litigation is set up your estate plan with these conflicts in mind. A good estate planning attorney will anticipate disputes because they hear common and uncommon estate concerns. Thus, it is difficult to anticipate a will contest if you do not recognize a potential conflict. A good estate planning attorney is necessary to achieve your giving goals in a cost effective manner.
Written by:
Sean L. Robertson, Attorney at Law
Robertson Law Group, LLC
Serving Cook, DuPage, & Will Counties
w) 312-498-6080 or f) 312-377-2480
Check out our two blogs: www.chicagolandestatestrusts.blogspot.com or www.robertsonlawgroup.com/blog.htm
Many attorneys can prepare wills and trusts, but most attorneys are ill equipped to set your will or trust up in a manner that eliminates or minimizes conflicts within your own family. A common question or statement is "my family would never fight over an estate issue." Estate conflicts are normal and arise due to one person's loss or gain is another person's gain or loss. Thus, certain family members feel entitled to an inheritance or feel that they were wronged when they do not get their inheritance.
One effective estate planning tool to avoid litigation is privacy. When documents are public and within the public domain, it is difficult to avoid litigation in many cases. Wills are typical examples of documents that are public record. Wills are commonly litigated because one person is hurt by their lack of inheritance. Typically, this person was disinherited or feels that their sibling buttered their mother or father up and coerced them into signing their will and assets over to this person.
A Revocable Living Trust is a document where you prepare in an attorney's office and it is a private document. The only people who are entitled to see this document are the beneficiaries. Privacy is important in reducing disputes because unlike Wills, which must be probated, a half-way smart attorney would not send an heir that may dispute the validity of the document a certified letter from an attorney. In many cases, when a person gets a certified letter from an attorney, they hire an attorney. This attorney advises his or her client that they have a case. Hence, litigation arises.
Another way to avoid litigation is set up your estate plan with these conflicts in mind. A good estate planning attorney will anticipate disputes because they hear common and uncommon estate concerns. Thus, it is difficult to anticipate a will contest if you do not recognize a potential conflict. A good estate planning attorney is necessary to achieve your giving goals in a cost effective manner.
Written by:
Sean L. Robertson, Attorney at Law
Robertson Law Group, LLC
Serving Cook, DuPage, & Will Counties
w) 312-498-6080 or f) 312-377-2480
Check out our two blogs: www.chicagolandestatestrusts.blogspot.com or www.robertsonlawgroup.com/blog.htm
Monday, May 18, 2009
Homestead Exemption and Asset Protection
A homestead exemption is an exemption that is granted by your estate for equity in your home. Thus, homestead exemptions are important when you receive a judgment against you or your wife.
Today, I spoke with two prospects: one from Florida, which has a generous homestead exemption (unlimited) and another from California, which gives a $50,000 exemption for single persons and $75,000 for married persons that reside in their personal residence at the time of the judgment.
Thus, the homestead exemption is the part of your real estate that is exempt from creditors.
Sean L. Robertson, Esq.
Robertson Law Group, LLC
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415\
w) 312-498-6080 f) 312-377-2480
e) RobertsonLawGroup@gmail.com
Key words: Asset Protection, homestead exemption
Today, I spoke with two prospects: one from Florida, which has a generous homestead exemption (unlimited) and another from California, which gives a $50,000 exemption for single persons and $75,000 for married persons that reside in their personal residence at the time of the judgment.
Thus, the homestead exemption is the part of your real estate that is exempt from creditors.
Sean L. Robertson, Esq.
Robertson Law Group, LLC
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415\
w) 312-498-6080 f) 312-377-2480
e) RobertsonLawGroup@gmail.com
Key words: Asset Protection, homestead exemption
Thursday, May 14, 2009
Todd Stroger and Federal Tax Lien Asset Protection
Yesterday, the news media in Chicago, Illinois published information about the Cook County Board President Todd Stroger and his federal tax lien. A federal tax lien is a notice by the IRS, which means that a person, business, or organization owes the IRS for back owed taxes. Why is this important? This is important because the IRS can force Todd Stroger and his wife to pay his unpaid taxes or foreclose his house. Thus, a notice of federal tax lien is an scary notice to receive. This blog is not about Todd Stroger and whether he is a bad guy or woman or whether a good politician. In Cook County, Todd Stroger has people that love him and hate him.
This blog is about educating the public about the need for Asset Protection. Asset Protection is about structuring your assets prior to a claim or lawsuit arising and placing your assets beyond the reach of creditors such as medical bills, IRS tax debts, partnership disputes, and medical bills/creditors. In Todd Stroger's example, facing the prospect of having your house foreclosed if you do not pay the IRS is a scary proposition. It is scary because the IRS is a creditor you do not want against you. If Todd Stroger had his assets such as his home properly protected, the IRS or any creditor would not be in a position to foreclose his house. How was Todd Stroger's house titled? I am assuming that Todd Stroger and his wife owned their house jointly as joint tenants, which means that if one spouse deceases, than the other spouse inherits the house. The disadvantage with joint tenancy is one of the spouse's creditors can force a sale of their house when a judgment has been entered against them. Thus, in our example, the IRS can foreclose on the Stroger's house despite being current with his current mortgage company.
How Should You Structure Your Property?
Tenancy by Entirety is a way of owning property with a husband and wife. With tenancy by entirety, you and your wife own your personal residence but a judgment by the husband or wife does not attach to the property. Thus, the IRS could not force a sale of the Stroger's house. Tenancy by Entirety is a way in State of Illinois of owning property, which is exempt from creditors such as the IRS, credit card companies, hospital companies, and other creditors.
By all means, I strongly recommend that people pay their taxes on time and be good citizens. Unfortunately in life, bad things happen to people. In case of these bad things, it is better to be properly protected from lawsuits and creditors.
A better way to own your personal residence is in a Private Land Trust. With a Private Land Trust, one still is the beneficiary of their house but it appears that a Title Insurance Company is the owner. Why is this important? Privacy is a major asset protection tool. In a Private Land Trust, the only people that know who owns your home is the Private Land Trust Company. Simply put, it is easy to find out that you own your home, but the real power of a Private Land Trust is that judgments and liens do not attach to Private Land Trusts. Thus, you can get a judgment in your name and either not pay the judgment (judgment proof) or negotiate a favorable settlement with the creditor and pay a low percentage of the debt due to it being doubtful as to their ability to collect on the judgment.
Sean Robertson, Esq. is an Asset Protection Attorney concentrating in Wills & Trusts, Asset Protection, Elder law, and Probate & Guardianship law. Sean Robertson may be reached at 312-498-6080 or RobertsonLawGroup@gmail.com.
Robertson Law Group, LLC
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Il 60415
Serving Cook County, DuPage, & Will Counties
This blog is about educating the public about the need for Asset Protection. Asset Protection is about structuring your assets prior to a claim or lawsuit arising and placing your assets beyond the reach of creditors such as medical bills, IRS tax debts, partnership disputes, and medical bills/creditors. In Todd Stroger's example, facing the prospect of having your house foreclosed if you do not pay the IRS is a scary proposition. It is scary because the IRS is a creditor you do not want against you. If Todd Stroger had his assets such as his home properly protected, the IRS or any creditor would not be in a position to foreclose his house. How was Todd Stroger's house titled? I am assuming that Todd Stroger and his wife owned their house jointly as joint tenants, which means that if one spouse deceases, than the other spouse inherits the house. The disadvantage with joint tenancy is one of the spouse's creditors can force a sale of their house when a judgment has been entered against them. Thus, in our example, the IRS can foreclose on the Stroger's house despite being current with his current mortgage company.
How Should You Structure Your Property?
Tenancy by Entirety is a way of owning property with a husband and wife. With tenancy by entirety, you and your wife own your personal residence but a judgment by the husband or wife does not attach to the property. Thus, the IRS could not force a sale of the Stroger's house. Tenancy by Entirety is a way in State of Illinois of owning property, which is exempt from creditors such as the IRS, credit card companies, hospital companies, and other creditors.
By all means, I strongly recommend that people pay their taxes on time and be good citizens. Unfortunately in life, bad things happen to people. In case of these bad things, it is better to be properly protected from lawsuits and creditors.
A better way to own your personal residence is in a Private Land Trust. With a Private Land Trust, one still is the beneficiary of their house but it appears that a Title Insurance Company is the owner. Why is this important? Privacy is a major asset protection tool. In a Private Land Trust, the only people that know who owns your home is the Private Land Trust Company. Simply put, it is easy to find out that you own your home, but the real power of a Private Land Trust is that judgments and liens do not attach to Private Land Trusts. Thus, you can get a judgment in your name and either not pay the judgment (judgment proof) or negotiate a favorable settlement with the creditor and pay a low percentage of the debt due to it being doubtful as to their ability to collect on the judgment.
Sean Robertson, Esq. is an Asset Protection Attorney concentrating in Wills & Trusts, Asset Protection, Elder law, and Probate & Guardianship law. Sean Robertson may be reached at 312-498-6080 or RobertsonLawGroup@gmail.com.
Robertson Law Group, LLC
9923 S. Ridgeland Avenue, Suite 99
Chicago Ridge, Il 60415
Serving Cook County, DuPage, & Will Counties
Friday, May 1, 2009
How a Disabled Adult Can Discharge a Guardianship?
I had a prospect ask me this question yesterday and the answer is simply write your Presiding Judge of your Circuit Court, which has jurisdiction over your guardianship matter.
As a disabled person, you have legal rights and setting up a guardian is an important restriction of your legal right. Typically, when you are served your Summons for Petition of Appointment of Guardian, it will explain to you your legal rights.
Sean Robertson is an attorney that concentrates in Probate & Guardianship, Wills & Trusts, Powers of Attorney, Entity Selection Planning, & Asset Protection planning. Sean Robertson can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com
As a disabled person, you have legal rights and setting up a guardian is an important restriction of your legal right. Typically, when you are served your Summons for Petition of Appointment of Guardian, it will explain to you your legal rights.
Sean Robertson is an attorney that concentrates in Probate & Guardianship, Wills & Trusts, Powers of Attorney, Entity Selection Planning, & Asset Protection planning. Sean Robertson can be reached at 312-498-6080 or RobertsonLawGroup@gmail.com
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