Question for life gurus

[trvlnut]

Remember O.J.s pension $? The Goldmans can't get to it. I believe there are some places that the money can be placed and I'm pretty sure it's qualified retirement plans. In fact, I think IRAs are now protected, but don't quote me on that.

I think you should have him consult with a lawyer. If the lawyer says he can shield his assets in a permanent life policy, then good for you and him. If not, can he still use the insurance?

 

[James]

I wasn't talking about a place to put money after a suit has been filed. I'm talking about a place to put "lawsuit proof" money now just in case you're sued down the road.

Once again, generally speaking WL and UL's are protected along with Annuities and Qualified Retirement Accounts. Yet given circumstances beyond our control all things are in flux. If down the road Insurance looses its tax deferred status IMHO it will also loose any protection it now holds. Best thing is to set up a plan and then have him and yourself go to an Attorney of some note in the field of business and trial law to have him give it thumbs up or down.

 

[djs]

Annuities, annuities, annuities. This is one of the biggest benefits of annuities, that most people blow right by. There are drawbacks, but OJ Simpson is STILL searching golf courses based on the money he gets paid from annuities, that couldn't be touched.

Life policies might work, if you can keep inside of TAMRA guidelines, and need the life insurance, can qualify, etc. If you are young enough, and trying to stash a few 100K for a rainy day, you might have a problem with doing it in a life policy. If you get rated, it could be expensive.

Lots of things to look at. A GOOD estate planning attorney is the best route for this.

Dan

 

[somarco]

Estate planning attorneys usually have no clue about asset protection. They are more concerned with asset CONSERVATION.

Asset protection involves the use of multiple trusts, offshore accounts, limited partnerships, etc.

If you want to get in that game, do some research.

 

[Mr. Bill]

Here's a link that may help in this area, the state specific information is on the left hand side:

www.assetprotectionbook.com

 

[senior-advisor-indiana]

Annuities are protected frm lawsuits and bankruptcy.

 

[somarco]

Annuities are protected frm lawsuits and bankruptcy

Some annuities are, not all.

You can't put all your assets into annuities . . . unless you are O.J. . . .

 

[somarco]

That is an excellent book. Asset protection is a highly specialized field and very few attorneys really understand the complexity of hiding assets.

 

[Macdaddy]

Won't work.

There is a legal term for that. Look up fraudulent conversion.

A good attorney will find those assets and get them.

Actually it is Fraudulent Conveyance. If there is any current potential claim or liability to another and he transfers the asset it is a fraudulent conveyance and a judge can break it apart and award it to a creditor.

 

[Macdaddy]

Here's a link that may help in this area, the state specific information is on the left hand side:

www.assetprotectionbook.com

Jay is the best in the biz.

Proper asset protection should not use offshore vehicles as they will not protect you from a judge telling you to repatriate the funds under judgement and when you do not comply you can be put in jail for contempt of court. This has happened before in a landmark case.

Numerous planning tools can be used like LLCs and FLPs which require a creditor to get a charging orders. Once a charging order is issued the creditor must wait for a distribution. If you do not do a distribution he cannot collect. This puts the debtor in a better postion to settle the claim for a lessor amount.

Only Irrevocable trusts offer any creditor protection, but the problem is those types of trusts must be for the benefit of someone else, not you.....and the are Irrevocable and must be formed before there are any potential claims or actions.

Debt can be used in a way called Equity Stripping, which is simply to encumber your assets with debt. No creditor wants your house and a fat mortgage with it.

Funds need to be in insurance products like policies and annuities or qualified plans covered by Erisa. IRAs are not covered under Erisa. Erisa is creditor proof by law.