A family Limited Liabiilty Corporation (LLC) is an excellent asset protection planning tool for Physicians and Dentists. A family LLC is a term, which is simply describing an LLC that is owned by a physician and his/her family.
A family LLC differs with a normal LLC because a Family LLC utilizes voting and non-voting membership interests. With a normal LLC, the owners of the LLC own one type of stock-voting stock/membership interests. The purpose of a Family LLC is asset protection. A Family LLC is similar to a Family Limited Partnership except that a Family LLC is simplier and less complicated.
The concept behind a Family LLC is to convert an individual asset into a business asset that is owned by multiple parties other than just the Physician. For example, Adam is a Surgeon and his wife, Sue, own a Family LLC, which owns their CDs, Mutual Funds, and Stock portfolio with Adam and Sue owning each 1 percent of voting Stock in AS, LLC and each own 48 percent each as non-voting stock while their adult children each own 1 percent of non-voting stock in AS, LLC.
Under the above scenario, the goal is to transfer assets that are at a high risk from being seized during a lawsuit or a judgment. The goal is simple, which is to change the title of the assets and make those assets untouchable in a lawsuit. With multiple people owning the LLC, a creditor would have a difficult time collecting the assets owned by AS, LLC.
Furthermore, with a Family LLC, the sole rememdy that a creditor has is a charging order, which gives the creditor the ability to receive any distribution that the Physician would receive. Thus, the creditor has a tax liability because they are responsible for paying taxes on any profits from any distributions that were assigned to them that should have gone to the physician. This creates a big liability for the creditor and gives the creditor an incentive to go away or settle the dispute for a small sum of money.
The true goal of asset protection is to place your assets beyond the reach of a creditor. Thus, you want the creditor to avoid any collection activities because the payment of attorney's fees and their costs exceed the liklihood of any collection efforts.
Sean Robertson is an Asset Protection Attorney for Physicians and Dentists in Cook County, Illinois. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
Wednesday, March 2, 2011
Tuesday, March 1, 2011
What is the difference between a Living Trust and a Private Land Trust?
A Living Trust is an estate planning legal tool, which is similar to a will in that you name a Trustee and beneficiaries. Unlike a will, a Living Trust offers privacy and a smooth transition upon your death. A properly funded living trust avoids probate court and the hassles associated with a will. With a will, one must undergo probate court because any item that is in your individual name must be probated unless it is a written contract.
Thus, a living trust does not provide asset protection benefits, but rather it is an estate planning legal tool.
In contrasts, a Private Land Trust is a good asset protection tool because liens and judgments do not attach to a private land trust. A private land trust holds limited asset protection benefits and estate planning benefits. For married couples in Illinois, a Private Land Trust is an excellent legal tool. Holding your residence in a Private Land Trust as tenants by entirety will make it virtually impossible to penetrate this legal structure unless you and your spouse are jointly sued. Often times, I advise couples against placing the corporate entity in both of your names for this reason. A private land trust also allows limited estate planning benefits because you designate a beneficiary. Thus, you have a written contract that appoints a beneficiary upon your death.
Sean Robertson is an Asset Protection and Estate Planning attorney in downtown Chicago. Sean Robertson can be reached at 312-498-6080.
Thus, a living trust does not provide asset protection benefits, but rather it is an estate planning legal tool.
In contrasts, a Private Land Trust is a good asset protection tool because liens and judgments do not attach to a private land trust. A private land trust holds limited asset protection benefits and estate planning benefits. For married couples in Illinois, a Private Land Trust is an excellent legal tool. Holding your residence in a Private Land Trust as tenants by entirety will make it virtually impossible to penetrate this legal structure unless you and your spouse are jointly sued. Often times, I advise couples against placing the corporate entity in both of your names for this reason. A private land trust also allows limited estate planning benefits because you designate a beneficiary. Thus, you have a written contract that appoints a beneficiary upon your death.
Sean Robertson is an Asset Protection and Estate Planning attorney in downtown Chicago. Sean Robertson can be reached at 312-498-6080.
What is Physician Asset Protection?
Physician asset protection is a legal concentration designed to protect the assets of a physician from legal risks such as professional malpractice concerns or breach of contract litigation or partnership disputes.
The key to successful asset protection is advanced planning. Advanced planning is key because advanced planning reduces the liklihood of any claims that you attempted to defraud your creditors. A key component of asset protection is planning against future creditors.
A future creditor is a creditor that has not materialized yet. Thus, the key is you should not have an active malpractice or litigation matter. For most Physicians, malpractice exposure is not the most significant legal risks.
In most cases, the most significant legal risks is a partnership dispute or a breach of contract or fraud case. I know you are thinking that you would never be involved in a fraudulent matter. However, it is easy to classify a litigation matter as fraud or conversion. Generally, a fraud or conversion claim enables a Plaintiff to seek punitive damages and attorney's fees.
In my experience, a good asset protection plan protects your home, any real estate or vacation property, and your bank accounts and significant stock holdings. For different Physicians, the simplication or complexibility of your asset protection plan may differ depending on your marriage status, your desire for a simple or complex plan, or your potential legal exposure.
Sean Robertson is an Asset Protection Attorney for Physicians and Dentists. Sean Robertson is based in downtown Chicago, Illinois, which is in Cook County. Sean Robertson may be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
The key to successful asset protection is advanced planning. Advanced planning is key because advanced planning reduces the liklihood of any claims that you attempted to defraud your creditors. A key component of asset protection is planning against future creditors.
A future creditor is a creditor that has not materialized yet. Thus, the key is you should not have an active malpractice or litigation matter. For most Physicians, malpractice exposure is not the most significant legal risks.
In most cases, the most significant legal risks is a partnership dispute or a breach of contract or fraud case. I know you are thinking that you would never be involved in a fraudulent matter. However, it is easy to classify a litigation matter as fraud or conversion. Generally, a fraud or conversion claim enables a Plaintiff to seek punitive damages and attorney's fees.
In my experience, a good asset protection plan protects your home, any real estate or vacation property, and your bank accounts and significant stock holdings. For different Physicians, the simplication or complexibility of your asset protection plan may differ depending on your marriage status, your desire for a simple or complex plan, or your potential legal exposure.
Sean Robertson is an Asset Protection Attorney for Physicians and Dentists. Sean Robertson is based in downtown Chicago, Illinois, which is in Cook County. Sean Robertson may be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
Friday, February 25, 2011
Set Up Your Asset Protection Plan Before Filing a Lawsuit
Today's blog is about the importance of setting up your asset protection plan before commencing or beginning a lawsuit against another party. The first rule when one sues another party is that the Plaintiff should expect the possibility of a counter suit.
A counter suit is essentially a lawsuit being filed against the Plaintiff. For example, I have one client who is a physician that sued other physicians for violating their non-compete agreement. In return, the physicians filed a lawsuit against my client and his former business partner. The end result was a $1.6 million judgment against my client.
Fortunately, my client had performed asset protection legal services. Typically, the beginning process is to properly set up your home. This is done by placing your house into a Private Land Trust. A private land trust is a strategy in Illinois that does not allow liens and judgments to attach to the real estate. This is one (1) helpful tip.
Sean Robertson is an estate and asset protection attorney for Physicians and Dentists. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
A counter suit is essentially a lawsuit being filed against the Plaintiff. For example, I have one client who is a physician that sued other physicians for violating their non-compete agreement. In return, the physicians filed a lawsuit against my client and his former business partner. The end result was a $1.6 million judgment against my client.
Fortunately, my client had performed asset protection legal services. Typically, the beginning process is to properly set up your home. This is done by placing your house into a Private Land Trust. A private land trust is a strategy in Illinois that does not allow liens and judgments to attach to the real estate. This is one (1) helpful tip.
Sean Robertson is an estate and asset protection attorney for Physicians and Dentists. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
Thursday, February 17, 2011
Malpractice and Asset Protection
Malpractice is a major concern for Physicians and Dentists because a major malpractice case may jeopardize the financial assets of a Physician or Dentists. Often times, malpractice insurance policies are limited to the first $1 million and in major medical malpractice cases, $1 million in insurance coverage is insufficient.
Asset protection is critical for Physicians and Dentists because of the perception of big pockets. Plaintiffs and their attorneys are finding new strategies and theories to enhance their pocket, which is increasingly scaring Physicians and Dentists.
Asset protection is not fraud but it is re-titling of one's assets to minimize the liability exposure of a Physician or Dentists's assets. A Family Limited Liability Corporation (LLC) or Irrevocable Trust are common techniques to reduce the liability risks of a Physician or Dentists.
Sean Robertson is an asset protection attorney based in downtown Chicago. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
Asset protection is critical for Physicians and Dentists because of the perception of big pockets. Plaintiffs and their attorneys are finding new strategies and theories to enhance their pocket, which is increasingly scaring Physicians and Dentists.
Asset protection is not fraud but it is re-titling of one's assets to minimize the liability exposure of a Physician or Dentists's assets. A Family Limited Liability Corporation (LLC) or Irrevocable Trust are common techniques to reduce the liability risks of a Physician or Dentists.
Sean Robertson is an asset protection attorney based in downtown Chicago. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.
Tuesday, February 8, 2011
5 Asset Protection Tips for Physicians
Here are five (5) Asset Protection tips for Physicians.
1. The first tip is make sure your primary residence is properly protected with your spouse/partner. This is the most important because in case of litigation, people's major concern is their house. Your house is important because it represents more than money. Rather, your house represents your family, your stability, and your future. You protect your house in Illinois by transferring your house into a Private Land Trust. A Private Land Trust is a way to own property where liens and judgments do not attach. This is important because if a lawsuit is filed against you and they are successful, a lien cannot be placed against your house. If you are married, your house should be titled inside the private land trust as tenancy by entirety.
2. The second tip is understand what assets are affected in case of a lawsuit. Any balances in checking accounts, savings accounts, mutual funds, stocks, bonds, and personal property are subject to the lawsuit and judgment. This means these assets are particularly vulnerable to lawsuits. Assets that are protected are retirement accounts, cash value life insurance, and annuities.
3. The third tip is make sure any investment or vacation property are properly protected. A Limited Liability Corporation (LLC) is an excellent way to title your real estate to insulate it from claims of your creditors (other than that piece of property). Creating an LLC is like creating a fictional person that owns the property interest.
4. The fourth tip is have an appropriate Living Trust that provides for your family in case of a disability or death. A Living Trust is a private document that dictates your wishes upon your death. Unlike a will, a Living Trust avoids the pain and agony of probate court.
5. The fifth tip is create a Family Limited Liability Corporation (LLC) to hold your vulnerable assets discussed in Paragraph 2. A Family LLC is an asset protection tool, which places your vulnerable assets beyond the reach of future creditors. This is important because it is difficult to collect on a judgment against a Family LLC. Physicians should use a combination of a variety of asset protection strategies.
Sean Robertson is an Physician Asset Protection Attorney based in downtown Chicago. Sean Robertson may be reached at 312-498-6080. Sean Robertson practices in Cook, Dupage, and Will Counties.
1. The first tip is make sure your primary residence is properly protected with your spouse/partner. This is the most important because in case of litigation, people's major concern is their house. Your house is important because it represents more than money. Rather, your house represents your family, your stability, and your future. You protect your house in Illinois by transferring your house into a Private Land Trust. A Private Land Trust is a way to own property where liens and judgments do not attach. This is important because if a lawsuit is filed against you and they are successful, a lien cannot be placed against your house. If you are married, your house should be titled inside the private land trust as tenancy by entirety.
2. The second tip is understand what assets are affected in case of a lawsuit. Any balances in checking accounts, savings accounts, mutual funds, stocks, bonds, and personal property are subject to the lawsuit and judgment. This means these assets are particularly vulnerable to lawsuits. Assets that are protected are retirement accounts, cash value life insurance, and annuities.
3. The third tip is make sure any investment or vacation property are properly protected. A Limited Liability Corporation (LLC) is an excellent way to title your real estate to insulate it from claims of your creditors (other than that piece of property). Creating an LLC is like creating a fictional person that owns the property interest.
4. The fourth tip is have an appropriate Living Trust that provides for your family in case of a disability or death. A Living Trust is a private document that dictates your wishes upon your death. Unlike a will, a Living Trust avoids the pain and agony of probate court.
5. The fifth tip is create a Family Limited Liability Corporation (LLC) to hold your vulnerable assets discussed in Paragraph 2. A Family LLC is an asset protection tool, which places your vulnerable assets beyond the reach of future creditors. This is important because it is difficult to collect on a judgment against a Family LLC. Physicians should use a combination of a variety of asset protection strategies.
Sean Robertson is an Physician Asset Protection Attorney based in downtown Chicago. Sean Robertson may be reached at 312-498-6080. Sean Robertson practices in Cook, Dupage, and Will Counties.
Wednesday, February 2, 2011
Top 5 Estate Planning Tips for Physicians and Dentists
In this blog, we will discuss the Top 5 Estate Planning Tips for Physicians and Dentists.
1st Tip: The first tip is to have a Living Trust. A Living Trust is a device that transfers your assets into your Living Trust in case you or your spouse become disabled or unable to make decisions for yourself. This is important because a properly funded Living Trust will avoid court procedures and probate court. Unlike a will, a Living Trust is a private document because there is no court procedure and there is a smooth transition upon your death or incapacity.
2nd Tip: Make sure your principal residence is titled in a Private Land Trust. For married couples/partners, it is important to have your house as tenants by entirety. Tenants by entirety provides asset protection in case you, the Physician or Dentists, has a lawsuit or judgment against you. Titling your primary residence as tenants by entirety allows you and your wife to avoid a creditor from forcing the sale of your primary residence. The benefit of a Private Land Trust is privacy and liens and judgments do not attach to your primary residence with some exceptions.
3rd Tip: Make sure your assets are properly titled and outside of your personal name or joint ownership with your spouse or partner. Often times, I see a Physician or Dentists and they have a couple of real estate properties that are owned by them and their spouse or simply by themselves. This is a big "no, no" because an accident on any of the investment real estate properties threatens their financial solvency.
4th Tip: Make sure you and your spouse have a power of attorney for property and healthcare. A power of attorney is a legal document where you appoint a person or multiple people (depending on deaths, etc.) to act as your agent in case you are unable to make healthcare or financial decisions.
5th Tip: Stop waiting to get your estate and asset protection plan completed because you may have a lawsuit or potential lawsuit filed against you, which makes it difficult to properly plan for your estate or asset protection goals.
Sean Robertson is an estate planning and asset protection attorney that counsels Physicians and Dentists on their asset protection and estate planning goals. Sean Robertson can be reached at either (312) 498-6080 or (630) 364-2318. Robertson Law Group, LLC has offices in downtown Chicago and Naperville, Illinois.
1st Tip: The first tip is to have a Living Trust. A Living Trust is a device that transfers your assets into your Living Trust in case you or your spouse become disabled or unable to make decisions for yourself. This is important because a properly funded Living Trust will avoid court procedures and probate court. Unlike a will, a Living Trust is a private document because there is no court procedure and there is a smooth transition upon your death or incapacity.
2nd Tip: Make sure your principal residence is titled in a Private Land Trust. For married couples/partners, it is important to have your house as tenants by entirety. Tenants by entirety provides asset protection in case you, the Physician or Dentists, has a lawsuit or judgment against you. Titling your primary residence as tenants by entirety allows you and your wife to avoid a creditor from forcing the sale of your primary residence. The benefit of a Private Land Trust is privacy and liens and judgments do not attach to your primary residence with some exceptions.
3rd Tip: Make sure your assets are properly titled and outside of your personal name or joint ownership with your spouse or partner. Often times, I see a Physician or Dentists and they have a couple of real estate properties that are owned by them and their spouse or simply by themselves. This is a big "no, no" because an accident on any of the investment real estate properties threatens their financial solvency.
4th Tip: Make sure you and your spouse have a power of attorney for property and healthcare. A power of attorney is a legal document where you appoint a person or multiple people (depending on deaths, etc.) to act as your agent in case you are unable to make healthcare or financial decisions.
5th Tip: Stop waiting to get your estate and asset protection plan completed because you may have a lawsuit or potential lawsuit filed against you, which makes it difficult to properly plan for your estate or asset protection goals.
Sean Robertson is an estate planning and asset protection attorney that counsels Physicians and Dentists on their asset protection and estate planning goals. Sean Robertson can be reached at either (312) 498-6080 or (630) 364-2318. Robertson Law Group, LLC has offices in downtown Chicago and Naperville, Illinois.
Subscribe to:
Posts (Atom)
