Client Alerts

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 […]

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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 […]

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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 […]

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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 […]

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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, […]

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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 […]

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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 […]

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Offshore Asset Protection Alert* – Lessons Learned from the Case of Michael R. Mastro

The largest individual bankruptcy proceeding in the U.S. Bankruptcy Court for the Western District of Washington has just commenced, and already creditors are taking aim at an offshore asset protection trust established under questionable circumstances. In the case of In re Michael R. Mastro, one of the most well-known real estate developers in the State of Washington lists $249 million of assets against almost $600 million in debts. The bankruptcy […]

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Is Your LLC A Time Bomb? – UPDATED

Dear Valued Readers, When we originally sent this article on October 1st, 2009, we failed to include the change to the Arizona law which made its Charging Order provisions the “exclusive remedy” when enforcing judgments against members of a validly formed Arizona Limited Liability Company. We have updated the article to include this development. We apologize for not including this in the body of our original article; however, in the […]

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Is Your LLC A Time Bomb? – This article will demonstrate how to defuse it.

For the past 15 years or so, the Limited Liability Company (the “LLC”) has been the preferred business entity for tax and business purposes. The LLC has gained widespread use because it is a simpler tax and business structure to hold title to assets such as real property, business equipment and operating businesses. Although the LLC is owned by one or more Members, it can be managed by one or […]

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