Client Alerts

2010 Tax Act – Year End Tax Planning Alert

Dear Client, Friend, and Colleague: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, P.L. 111-312 (“2010 Tax Act”) has been signed into law. There are a host of significant changes that will affect everyone’s estate plan. The following are urgent points that may affect your planning for the 2010 year, and may require immediate action: 1. 2010 Gift Exclusion: a. The gift exclusion remains at only $1 million […]

Continue reading

The New Estate Tax Law: A Tax Savings Opportunity You Should Know About and Must Complete Before December 31, 2010

Our beloved Congress and President has finally passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This Client Alert is to alert you to an incredible planning opportunity, albeit, a very short time frame. A GST Tax Rate of 0%: Any generation skipping transfer (GST) (a transfer to a grandchild or more remote descendant or another skip person [i.e., an unrelated individual more than 37 1⁄2 years younger than […]

Continue reading

New HIRE Act Affects Those With Foreign Asset Protection Trusts

Many U.S. taxpayers have established offshore trusts for asset and lifestyle protection reasons. Generally, offshore asset protection trusts (APTs) are set up to be “tax neutral,” such that the settlor pays a fixed amount of income tax on the income earned inside the APT. Often, these trusts contain assets such as boats, planes, and other luxury items, including substantial cash and securities. The trustee of an APT can make the APT assets available […]

Continue reading

Asset Protection Planning – The Conversion of the 401(k) Roth Account Under the New Law*

Until December 31, 2010, taxpayers with an IRA or 401(k) plan have the option to convert to a Roth IRA, report the income tax over 2010 and 2011, and avoid the income taxation upon subsequent withdrawal. (The taxpayer may elect to recognize all of the income in 2010). The recent enactment of The Small Business Jobs and Credit Act of 2010 (the “Act”) will now allow the conversion of Employee Retirement Income Security […]

Continue reading

David McNair P.C. – Asset Protection Trust Audit

For 25 years, our law firm has been ahead of the curve bringing our clients innovations for effective asset protection techniques. Below, I am pleased to introduce a new and innovative service available to those who have established or are considering establishing a foreign asset protection trust. David McNair’s company, the provider of this new service, is one of the early pioneers of offshore asset protection trusts, as a founder of one of […]

Continue reading

Conversion of Traditional IRA to Roth IRA – How to Deal with the Income Tax Consequences

For those taxpayers with a traditional IRA, for the balance of 2010, the government will allow you to convert an unlimited amount of your conventional IRA to a Roth IRA. A Roth IRA allows for withdrawals on an income tax-free basis. Upon conversion, the taxpayer must recognize the income in the year of conversion (or elect to spread the income over 2010 and 2011). The taxpayer must also wait to receive distributions […]

Continue reading

Asset Protection Trusts & The Attorney Client Privilege

For over 20 years, lawyers from around the country have been implementing foreign and domestic asset protection trusts (APTs) for their clients in an effort to create “firewalls” surrounding their assets to combat the explosion of lawsuits in the United States, especially during the Great Recession. While the comparison of foreign and domestic APTs is beyond the scope of this article, in the author’s law practice, he has observed an alarming trend in […]

Continue reading

The Jamie Solow Case: Counsel Discusses “What Really Happened”

In Asset Protection Planning Newsletter #151, LISI Commentator Team member Gideon Rothschild provided members with his analysis of Securities and Exchange Commission vs. Jamie Solow. We promised that Gideon’s commentary would be followed by the commentary of Howard Rosen, counsel for Mrs. Solow, and Jeffrey M. Verdon, Esq. Now, Howard D. Rosen, Esq., of Donlevy-Rosen & Rosen, P.A., Coral Gables, Florida, joins Jeffrey M. Verdon, Esq. of Jeffrey M. Verdon Law Group, LLP, Irvine, […]

Continue reading

Your Estate Plan: Could This Happen To You?

The combination of reduced asset values and the increase in the estate tax exemption between 2008 and 2009 has created a situation in which the “Law of Unintended Consequences” may cause devestating consequences for the surviving spouse. Assume that in 2008, a married couple had a net worth of $10M and instituted a very common estate plan, wherein at the death of the first spouse the then applicable estate tax exemption amount ($2M […]

Continue reading

Mortgage Over Basis Problems? Not Anymore… How To Deal With Phantom Income

If you (or your clients) have owned real estate for a long period of time, you are most likely faced with mortgage liabilities in excess of your adjusted tax basis in the real estate.1 Excessive depreciation deductions and mortgage refinancing have created what is commonly referred to as “phantom gain,” which is the excess of the mortgage liability over adjusted basis (also known as a “negative capital account”).2 If the value of the […]

Continue reading