INSIGHTS

Sale to a Friendly Third Party

Many debtors consider selling their residence to protect the equity. However, they may not want to actually move out. To accommodate these conflicting desires, the sale and leaseback of the residence to a friendly third-party on a deferred installment note may be the...

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Personal Residence Trusts

PERSONAL RESIDENCE TRUSTS AND QUALIFIED RESIDENCE TRUSTS (QPRT) Personal Residence Trusts No possession is more crucial to protect from a lender’s claim than the home you live in. For a lot of people, the home represents the largest part of their personal wealth. It...

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Outright Sale

An arm's-length cash sale is the best way to protect the residence (and the equity in the residence) because it is much easier to protect liquid assets (sale proceeds) than real estate. While this technique affords the best possible protection, it is also the most...

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Limited Liability Companies & Limited Partnerships

Limited liability companies and limited partnerships are frequently used in asset protection. Consider the following. Any asset that you own (the asset is titled in your name or owned by you directly) can be seized by a creditor. For example, if you have an apartment...

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Irrevocable Spendthrift Trusts

An irrevocable spendthrift trust is a type of trust that either limits or altogether prevents a beneficiary from transferring or assigning his or her interest in the income or the principal of the trust. Thus, a creditor cannot reach a beneficiary’s interest because a...

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Foreign Trusts

FOREIGN/OFFSHORE TRUSTS The international asset protection trust also referred to as an offshore trust is a popular form of asset protection. Trusts are versatile tools that can be resolved in jurisdictions that have lawful systems developed to improve asset...

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Foreign Entities

OFFSHORE/FOREIGN ENTITIES "Offshore" describes a place beyond one's national borders, whether that location is land-based or water-based. The term "offshore" might be used to define international financial institutions, companies, financial investments as well as...

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Equity Strips

What is Equity Stripping? Equity Stripping is a collection of methods created to decrease the overall equity in a property. Equity stripping strategies can be utilized by borrowers as ways of making properties unappealing to lenders, along with predatory lenders...

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Community Property

Transmutation of Community Property n a community property state, like California, a claim against either spouse will reach all of the community property assets (not just half).  One way to avoid that is to terminate community property with a written agreement (known...

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