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Millions of Americans die each year without any type of Estate Plan and force their families into the Court system to experience the high cost and time delay of Probate proceedings.  In fact, over fifty-percent (50%) of Americans don’t have any type of Estate Plan.  However, does everybody need a Revocable Living Trust?  Here are the facts….

Not everybody needs a Revocable Living Trust (“RLT”)!  A simple Will may suffice for some.  Their are generally four (4) main reasons to implement an RLT:

1) Provisions you may want to implement for minor children or children that have special needs in managing their finances;

2) Avoiding probate because you own a personal residence, business, or rental properties; or

3) Minimizing estate tax with a Marital-Bypass Trust.

4) GROW and PRIVATIZE your assets.

When you decide to implement your Estate Plan, please make sure to consult with an attorney that works every day in the area of Estate Planning.  Please be careful of the ‘general practitioner’ that believes an Estate Plan is a one-size-fits all proposition. I practice in the areas of business, estate and asset protection planning. Make sure you obtain a full-service Estate Plan that includes a number of ancillary documents with the basic Will or Trust and Pour-Over Will, which includes Powers of Attorney for Assets and Health Care, an Advance Medical Directive, and Deeds of Conveyance.

Leaving your family with an organized estate plan for your affairs is something your family will truly appreciate. However, the GROWTH and PRIVITIZATION of your estate allows yo to benefit and enjoy what’s yours while you’re alive while simultaneously insuring that only you and your family are aware of what you have.

GET THE BEST LEGAL ASSET PROTECTION AND ESTATE PLAN AVAILABLE!

WFB Legal Consulting, Inc.

LLCs offer superior asset protection over many other entity forms because judgments against members result in charging orders against distributions made to members, not the LLC assets. Recent case law developments impact the ability of multiple- and single-member LLCs to provide asset protection.

Foreign asset trusts can offer reliable methods of shielding assets from creditors in jurisdictions such as Nevis and the Cook Islands. With the IRS tightening its FBAR reporting requirements, however, offshore trusts and entities carry with them important tax reporting burdens.

Domestic asset protection trusts may provide a viable alternative to foreign trusts and are available in about 12 states. Estate planning practitioners must weigh the pros and cons of the various statutes as they consider domestic APT planning strategies.

Get the BEST LEGAL ASSET PROTECTION Available from the BEST ASSET PROTECTION GROUP Around:

WFB Legal Consulting, Inc.

If you are planning to die within the next two years, the estate tax law just signed by the President is a definite improvement. Everyone else needs a contingency plan.

 EGTRRA gradually reduced over a period of years and then abolished the federal estate tax for decedents dying in 2010. The pre-EGTRRA estate tax (with a maximum tax rate of 55 percent and a $1 million exclusion) was scheduled to be revived after 2010. Additional EGTRRA changes also affected the gift tax and the generation-skipping transfer (GST) tax.

Estate Tax Compromise 

TRUIRJCA (the “Act”) revives the estate tax for decedents dying after December 31, 2009, but at a significantly higher level than had been scheduled after 2010 under EGTRRA. The maximum estate tax rate is 35 percent with an exclusion amount of $5 million. This new estate tax regime, however, is itself temporary and is scheduled to sunset on December 31, 2012.

Together with the revival of the estate tax, the Act eliminates the modified carryover basis rules and replaces them with the stepped up basis rules that had applied until 2010. Property with a stepped-up basis receives a basis equal to the property’s fair market value on the date of the decedent’s death (or on an alternate valuation date). Under a modified carryover basis that EGTRRA had put into place for 2010, the executor may increase the basis of estate property only by a total of $1.3 million, with other estate property taking a carryover basis equal to the lesser of the decedent’s basis or the fair market value of the property on the decedent’s death. 

Option for 2010

The Act gives estates of decedents dying after December 31, 2009 and before January 1, 2011, the option to elect not to come under the revived estate tax. It gives those estates the option to elect to apply (1) the estate tax based on the new 35 percent top rate and $5 million exemption, with stepped-up basis or (2) no estate tax and modified carryover basis rules under EGTRRA. Any election would be revocable only with the consent of the IRS. 

Give me a call so THE BEST ASSET PROTECTION GROUP can explain your options.

WFB LEGAL CONSULTING, Inc.

Providing Individualized Estate and Business Solutions for Families & Small or Large Businesses. 

I thought it might be useful to provide some real-life examples of how to use your IRA and real estate to implement the growth of your Estate Plan. Here are some examples.

• Example I

John’s IRA has purchased a single-family home from an unrelated seller. John now wishes to have the IRA sell it to his sister with a first mortgage that his IRA will hold.

The purchase of a single family home from an unrelated party is not a problem. John pays $300,000 cash and his IRA holds the grant deed from the sale to his IRA by the third party. John’s IRA later sells his sister the property and takes back a first mortgage and a down payment in exchange. His IRA gives her a market rate loan for 15 years and receives a 10% down payment. Since this is a $280,000 debt owed to the IRA and not by the IRA, there is no concern about the potential liability of the IRA. John’s IRA has a fixed income investment and is protected because it holds the trust deed in the event his sister defaults on the loan. The transaction may also have the incidental benefit of allowing John’s sister to purchase the home more easily than she could have on the open market.

• Example II

Allison wants to form an LLC that will buy property that will be developed. She wants to make her IRA the primary investor. She expects to have other investors in the LLC.

Allison’s IRA can participate in the formation of the LLC provided Allison and related persons and parties do not already own 50% or more of the LLC in aggregate. If she is just starting the LLC, then the IRA can own something less than 100% (e.g., 90%). The LLC is considered a real estate operating company and, therefore, the assets are not considered plan assets unless there is 100% ownership by the IRA. If the company’s assets are deemed plan assets, then a transaction between the company and the IRA owner is considered a transaction between the IRA and a disqualified person (such as the IRA owner) and is therefore possibly a prohibited transaction. Because of some recent legal rulings involving self-dealing, we recommend that you consult with a competent attorney if you intend to have a personal role in any entity in which your IRA is an investor.

If the LLC was not a real estate operating company or other type of operating company (for example, if it was a hedge fund), then the aggregate ownership of all IRAs and employee benefit plans would have to be less than 25% in order for the LLC’s assets not to be considered IRA assets. (The interest owned by the IRA owner is disregarded for purposes of calculating the relevant percentage.)

• Example III

Howard wants to have his IRA purchase a $400,000 rental property with a 50% down payment. Is this possible and are there any special considerations?

Yes, it is possible, but there are special considerations such as:

• Disqualified persons (such as the IRA owner and his or her spouse) cannot personally guarantee the loan for the IRA. The loan must be supported by the property itself or some other property that the IRA owner owns
• The IRA will be subject to tax on any income and/or capital gains attributable to the leveraged portion of the investment

It should be noted, as an alternative to borrowing, that the IRA can purchase the property with other parties, all of who pay cash. When this is done, there is no UDFI and there are no issues associated with the financing.

Conclusion

In summary, the tax laws (1) require that the investments in an IRA not benefit the IRA owner or other “disqualified persons” and (2) prevent “self-dealing” between the IRA and the IRA owner or other disqualified persons. However, by properly structuring an IRA investment in real estate, an IRA can obtain the benefits of real estate investment in a manner that complies with applicable tax laws.

The foregoing is a general discussion. It is not intended, and should not be relied upon, as an opinion or advice on any legal, tax or investment aspects of IRAs. An IRA owner considering an IRA investment in real property should consult with their own advisor. These are but a few examples of Estate Planning and Legal Asset Protection Services provided by the Total Asset Protection Group of WFB Legal Consulting, Inc.

WFB LEGAL CONSULTING, INC.

Providing Individualized Estate and Business Solutions for Families & Small or Large Businesses. 

A Living Trust can minimize estate taxes by fully utilizing every individual’s Unified Credit. The Estate Tax Credit, as will be once again mandated by Congress in 2011, will shelter at least up to $2.5 million* from estate taxes. With only a will in place, a married couple will receive a single $2.5 million exemption.

However, if a Living Trust with “A-B Provisions” is in place and one spouse dies, the Living Trust separates into two separate trusts (commonly referred to as an A-B Trust).

In an A-B Trust, each of the two separate trusts will receive its own $2.5 million exemption, meaning a total of $5 million will be sheltered from estate taxes.

Any amounts over $5 million will be subject to estate taxes, with rates climbing as high as 46%.

Living Trusts are easy to start-up and require little on-going maintenance. They afford an extra measure of protection against loss of control, and ensure that your assets remain out of the public record even after your death. However, they do not provide protection against creditors or divorce, and do not reduce estate taxes for estates over $2.5 million in value ($5 million if married). Each family’s situation is different. 

If you are married or have assets over $100,000, you owe it to your family to investigate the best means to preserve your hard-earned wealth.

And for estates over $2.5 million, you may want to combine a living trust with another advanced estate planning technique, such as a corporate entity and an irrevocable living trust.

*Congress will more than likely re-establish the Estate Tax at either $2.5 million or possibly $5 million. It is unknown at this time. The above estimate is based on a conservative assumption of $2.5 million.

CONTROL–PROTECT–GROW  your Estate.

WFB LEGAL CONSULTING, Inc. BEST ASSET PROTECTION GROUP

“Estate Planning & Legal Asset Protection You Should Trust”

 Now, there is a means whereby you can GROW your Estate through real estate investing. Explore this article below, and remember, YOU must take Control of your estate, make it grow, and protect it. No one else will do it for you.

Obtaining funding is the #1 Challenge for most Investors in today’s business market. They cannot find financing on small deals, let alone multi-million dollar opportunities. If only the cash had been available to them, their dreams of financial freedom would have become a reality. Fortunately, you have uncovered the missing link to funding in every type of  economy—-http://www.privatemoneybank.com/wbernard 

Finally, you’re not at the mercy of the bank! Too many of us are experiencing serious love-loss with the banking system. Think about it, how many times have you felt like your loan owned you rather than the other way around? 

With Private Money, you get to be involved in the negotiation process, and the more you know about Private Money, the better you’ll be at parleying the best terms for you and your property. By thoroughly understanding the terms of Private Money, you can keep more money in your pocket and make a substantial return on your exit strategy. 

Once you’ve arranged and closed several deals, you’ll begin to think of and finance your deals like a bank. And, instead of your loan having you over a barrel, it will be structured to work toward the goal of ultimate short-term or long-term profit! 

With Private Money, you can get funding on great deals that banks would normally shun. Sometimes you’ll find a promising investment property that needs repairs, making them unsuitable for most banks, but perfect for most private money lenders. Private Funding loves the ugliest house on the prettiest street. You see, they look at the property’s future value, while the bank only looks at the property’s present condition. By going through a private lender, you open up more doors to opportunity and more avenues to make more money!Here’s a quick synopsis of the kinds of deals Private Money Loves:

 *Single Family Homes  

*In Already Established Areas  

*The Ugliest House on the Prettiest Street

*Usually 65 cents on the Dollar  

Don’t you hate making an offer while crossing your fingers behind your back and hoping that the bank will think it’s as good a deal as you do? While conventional lenders have no imagination and can’t see what you see, Private Money lenders are all about creativity and know that sometimes the uglier the house, the better the return will be! 

 Having a Private Lender in your court gives you confidence to put properties under contract. As long as you find the no-brainer, steal of a deal, do the proper due–diligence, and turn in a completed package to your private money lender, you can rest-assured that the deal will fund.  

SO…visit http://www.privatemoneybank.com/wbernard  today! 

We’ll have you up and running within 48-72 hours of your application. Finally, you can make offers with confidence! 

http://www.privatemoneybank.com/wbernard

WFB LEGAL CONSULTING, INC. (949) 413-6535

A BEST ASSET PROTECTION SERVICES GROUP

Control/Growth/Protection

ESTATE PLANNING & ASSET PROTECTION YOU SHOULD TRUST

Members of a LLC have great flexibility in an operating agreement to determine how best asset distributions will be apportioned among members. Unless the operating agreement (the contract that sets forth the LLC’s “terms and conditions” if you will) provides otherwise, distributions that are a return of capital must be in proportion to the capital contributions of each member. However, a member’s interest in a LLC is not strictly analogous to a percentage interest. Instead, a member’s interest represents the manner in which the members have agreed to share the economic benefits and burdens of the LLC.

Be aware, that no distributions may be taken by any member if in doing so, the LLC is not able to pay its debts, or if total assets would be less than the sum of total liabilities plus the liquidation preference of any class of members that may be senior to the members who wish the distribution in question.

WFB LEGAL CONSULTING, INC. prepares LLC Operating Agreements as part of its’ mission to provide the BEST ASSET PROTECTION available amounting to the most TOTAL ASSET PROTECTION being offered.

WFB LEGAL CONSULTING, INC. (949) 413-6535

A BEST ASSET PROTECTION SERVICES GROUP

Control/Growth/Protection

ESTATE PLANNING & ASSET PROTECTION YOU SHOULD TRUST

Using asset protection tools such as a self-directed IRA is, as I have recommended many times, a great way to accumulate wealth within your estate. But many people ask, “Where can I invest my IRA and receive a reasonable rate of return in a safe environment?” Of course, every investor should do their due diligence, and make the best decision for their specific situation. However, more often than not, I am seeing investors lend money from their IRA to other investors, secured by a trust deed. I am a big believer in this tool myself. 

Here is an example of how you go about it: 

Mr. Brando has $105k in his old 401k plan with a former employee.  He does a direct rollover into his new self-directed IRA. Once the account is established, he contacts a real estate investor who is seeking money for his next deal. The market value of the property that is the subject of the deal is 198k and the investor has an offer on it for 71k.  The investor estimates rehab costs to be 30k. So, Mr. Brando and the investor agree that Mr. Brando will lend him 101K from his new self-directed IRA, for 12% interest and 4 points over a 4 month maximum. They draw up the promissory note, secured by the trust deed. The investor is responsible for the rehab work, listing the property, working with a real estate agent and ultimately selling the property.  Mr. Brando not only likes the terms of the agreement, but  feels secured knowing if the something happens to the investor, he is secured by the deed of trust. 

With conventional financing guidelines they way they are today, there are many investors that are looking for alternative sources of capital. This can create a mutually beneficial situation for both investors and IRA holders.

YOU can become your own Bank! This is one of the BEST ASSET PROTECTION tools available today, in my opinion–and don’t think it takes a lot of cash. Some investors only need a minimum investment, at times as low as $25k or even less depending upon what cash the investor brings into the deal himself, You can set the limit as to what you want to lend as well.

WFB LEGAL CONSULTING, INC. can prepare the Deed of Trust and Promissory Note for you.

WFB LEGAL CONSULTING, INC.

CONTROL/GROWTH/PROTECTION

A BEST ASSET PROTECTION SERVICES GROUP

Real estate and IRAs/401(k)s, can combine to help you grow your business,  receive great tax advantages, and obtain the BEST ASSET PROTECTION available all at the same time. See below, for example, a list of facts and fiction regarding real estate investing with your self-directed IRA. It will help you determine what can and can’t be done within a self-directed IRA, when investing in real estate such as:

• Real Property
  • *Residential
  • *Commercial
  • *Improved
  • *Unimproved

• Rehabs
• Foreclosures
• Options
• Tax Liens
• And more!

Facts vs. Fiction:

Fact: No one in the industry measures up to WFB LEGAL CONSULTING, Inc. when it comes to knowledge, expertise, and support for real estate investors using tax-free and tax-deferred dollars.

Fiction: Real estate investments aren’t permitted in IRAs.  

Fact: Real estate investments have been permitted in self-directed retirement plans since 1975.

Fiction: You can’t leverage real estate investments in an IRA.  

Fact: You can leverage real estate investments in an IRA, but the debt can’t be recourse to you personally.

Fiction: You can’t roll over money from a 401(k) plan to an IRA.  

Fact: You can roll over money from a 401(k) plan; you just can’t be working at the old employer anymore.

Fact: You can team up with other IRA owners, including friends, family, and partners IRAs, and even personal money for more purchasing power.

Fact: You can lend funds to anyone to make a purchase.

Fact: Income and profits from real estate investments come back to the IRA tax-deferred or tax-free.

Fact: By having funds immediately available in your account, you can close faster than when trying to acquire other conventional sources of financing.

Fact: You can use your IRA to combine with other investment opportunities.

Fact: All un-invested funds in your IRA are placed in FDIC insured accounts.

Fact: You, the IRA owner, direct how your IRA makes investments.

Fact: You, the IRA owner, can direct what bank your money is in.

 All you need is an interest in real estate and the

BEST ASSET PROTECTION SERVICES GROUP available….

WFB LEGAL CONSULTING, Inc.