Inherited IRAs Are Naked

The U.S. Supreme Court ruled that children with inherited IRAs from their parents will not be able to keep the IRA in bankruptcy.  What does that mean for your children?  If your child has either a bankruptcy, lawsuit, divorce or IRS problems then those creditors can take all or a part of the IRA your child inherited from you. The solution is simple: the ...

Married? Your Trust is Probably Too Complicated!

Many married folks with a Revocable Living Trust (“RLT”) have a complicated planning tool commonly referred to as the (“A/B Trust”). In 2001, an estate paid a 55% estate tax on any assets valued at more than $675,000 (“the exemption”). Married couples were not guaranteed to each get the $675,000 exemption so they often created the A/B Trust to double ...

Humans Should Never Own Real Estate

I've been teaching attorneys, CPAs and Realtors for the past 12 years that title to real estate should never be owned by individuals.  Why? When an individual owns real estate the Probate Court must determine who will become the beneficiary when the individual dies.  This probate cost is approximately 5% of the fair market value of the real estate. If the ...

10 Reasons Why You Should Not Use LLCs to Hold Real Estate

10 Reasons Why You Should Not Use LLCs to Own Real EstateBecause I am an estate planning and asset protection attorney, I speak to folks everyday about the formation of limited liability companies (“LLCs”). Usually, these folks want to protect their personal assets in the event one of their tenants gets injured on one of their rental properties. I form ...