UltraTrust Irrevocable Trust Asset Protection

Irrevocable Trust

Asset Protection, Irrevocable Trust, UltraTrust

UltraTrust™: Asset Protection (Irrevocable Trust)

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Introduction to Trusts and why Asset Protection is so important   Rocco Beatrice gives an introduction to irrevocable trusts and an explanation of how they protect their owners. The article goes into additional benefits of revocable and irrevocable trusts including what is needed to set a one up.   Hello, my name is Rocco Beatrice. I am the Managing Director for Estate Street Partners. We provide financial solutions to your problem of wealth. We coordinate with your financial goals. We bring to the table the different disciplines, the accountants, the lawyers, the appraisers, the tax guys all for the purpose of protecting your wealth against potential frivolous lawsuits, to minimize your taxes on your income streams, to defer your capital gains taxes, to eliminate the probate process, and to eliminate the Estate tax. And finally, to facilitate tax efficient transfers of your wealth to whomever you’d like in the second generation and for asset protection.   The ULTRA TRUST®   And now I would like to talk to you about the Ultra Trust. With the Ultra Trust, you are repositioning your assets from you to an irrevocable trust. The purpose of which, is that you don’t own the asset. You legally don’t own the asset. If you do not own the asset, lawyers won’t sue you; the marketing people can’t track information about you and your wealth so that they can sell it to the highest bidder. If you don’t have any assets upon your death, they don’t have to go to probate and if you don’t have any assets on the date of death you don’t have to file the Estate tax return.   What’s a Trust?   Now I would like to talk to you about, what a trust is! A trust, no matter what type – irrevocable trust, revocable trust, grantor trust, non-grantor trust – is really nothing more than a contract between you and someone else. If there is a contract between you and I, we can sit down and decide you’re going to do this, you’re going to do that. Therefore, an Ultra Trust is nothing more than a private contract between you, the person with the money, and your trustee, the person who manages the money on behalf of your beneficiaries. And the beneficiaries can be you, your wife, your children, anyone you wish, your girlfriend, boyfriend, dog, cat, whatever. It’s whomever you desire.   What makes the Ultra Trust such a powerful device is the independence of the trustee. The trustee must be independent; he cannot be related to you by blood or marriage. If you have trouble delineating yourself from your assets, you have to have the asset in your name, then this is not for you. Because you legally have to separate your assets from yourself to the trust. It’s like leasing a car. You don’t own the car, but you get to use the car. You get to pay all the expenses for the car. If it’s a business car, you get to tax deduct all the expenses related to the rental of that car. You get to use the car. The Ultra Trust is essentially that. You reposition your assets from yourself to the trust. You no longer own the asset. If you no longer own the asset, no lawyer is going to take a contingency fee case where he’s going to collect 1/3 of nothing. The marketing people are not going to track to see how much money you have so that at dinner time you’re going to get a call from the kitchen guy, the window guy, the insurance guy and so forth to interrupt your dinner. You don’t own any assets; marketing people won’t get any information about you and your wealth.   If you don’t own any assets, then you don’t have to go to probate because probate is about people that own property, whether you have a will or not. And the Estate taxes which is taxation on what you own on the date of your death. You don’t own anything. Therefore, you avoid all these headaches. And if you don’t have any assets, you also qualify for government services.   Read more: Part 2 – Reposition Assets Taxes Probate Part 3 – Medicaid: 5-year look back Part 4 – Asset Protection Benefciary / Heirs

Asset Protection, Irrevocable Trust

Asset protection with Joint Tenancy, Tenancy in Common, Tenancy in Entirety & Community Property

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Protecting assets by Joint Tenancy, Tenants in Common, Tenancy in Entirety or Community Property have many disadvantages.   PART 1: ASSET PROTECTION: JOINT TENANCY, TENANCY IN COMMON, TENANCY IN ENTIRETY & COMMUNITY PROPERTY     Watch the video on Asset protection with Joint Tenancy, Tenancy in Common, Tenancy in Entirety & Community Property   Like this video? Subscribe to our channel.   THE CONCEPT OF ASSET PROTECTION includes the possibility of placing title in certain assets in the name of a less vulnerable spouse or other family members, or a legal entity. One should be very attentive in transferring title without an open invitation to a “fraudulent transfer” claim against the asset transferred as a result of the possibility of death by the spouse or a family member, or the possibility of a dissolute marriage, or even a court judgment.   Fraudulent conveyance has to do with transferring assets at less than the “fair cash value” thereby defrauding a potential creditor or the intentional divesting of assets which become unavailable for satisfaction of a lawsuit. Fair cash value means cash or near cash value at the time of transfer, not the price you paid for the asset. Example: you transfer your portion of your equity in your home to your wife for $100.00 and the fair cash value of your portion of the equity was $250,000 or you transfer title to your car to your brother for $10.00.   The most common methods of holding assets by INDIVIDUALS:   Joint Tenancy Joint Tenancy with right of survivorship Tenants in Common Tenancy by the Entirety Community Property LEGAL ENTITIES (Artificial person created by application of law): General Partnership Limited Partnership Limited Liability Company Corporation under Chapter “C” Corporation under Sub Chapter “S” Revocable Trust (There are many Revocable Trust variations, since a Trust is nothing more than a Contract) Irrevocable Trust (There are many Irrevocable Trust variations, since a Trust is nothing more than a Contract) (Read part 2 “Asset Protection: General/Limited Partnership, Corp Chapter “C”/Chapter “S”, LLC, Trusts”)   JOINT TENANCY   In the United States Joint Tenancy is common for real estate, bank accounts, brokerage accounts, and other assets. Husband and wife are both named on the deed to their home. This is a very bad idea. In my opinion, anyone recommending Joint Tenancy is uninformed and is perhaps guilty of malpractice.   Disadvantages of holding title in Joint Tenancy:   Loss of step-up in basis upon the death of the first Tenant. You bought the house for $100,000 some years later the cost basis is still $100,000 there’s no step-up in basis at the time of death. Loss of estate tax protection. Possible exposure of the assets to the creditor or the other Tenants. This is extremely and dangerously significant because any Tenant can transfer the asset to someone other than the other Joint Tenants WITHOUT PERMISSION from any of the Joint Tenants. Joint Tenancy disinherits all other heirs, except the remaining Joint Tenant. Possibility of a gift tax consequence may result from the transfer of property into Joint Tenancy. Title in Joint Tenancy supercedes any provisions of a will. Joint Tenancy supercedes any trust with the loss of all trust benefits. Advantage of Joint Tenancy:   In small estates title of Joint Tenancy does avoid unnecessary delay and unnecessary cost of the probate process.   JOINT TENANCY WITH RIGHT OF SURVIVORSHIP   Joint Tenants automatically inherit the property. There are six characteristics: Each Tenant acquired or was vested with the title at the same time. Each Tenant acquired title by the same instrument or deed, or action. Each Tenant owns an equal and undivided interest. Each Tenant has the right to possess the “whole” property (dangerous in cases of frivolous litigation). Each Tenant has the right to survivorship. Interest may not be transferred by will.   TENANCY IN COMMON   Tenancy in Common has the following characteristics: Separate but undivided interest in the property. (Each Tenant has his own deed/title to his share). Ownership interest in the property may be varying in proportions (Fractional shares i.e. 1/3, 1/2). Interest in the property may be transferred by will. All tenants have equal right to possession.   The risk of separate ownership is the risk. In cases where there are multiple owners, it’s difficult to have a consensus opinion acting as one without the risk of diverse opinions. Section 1031 like exchange of real estate as a Tenant In Common is widely used to transfer property Tax-free.   TENANCY BY THE ENTIRETY   A special kind of title between married couples, meaning that each spouse has the right to enjoy the underlying property by the entirety and when one of the spouses dies, the other inherits the property by the entirety. Tenancy by the Entirety has the following characteristics: Tenancy by the Entirety may only be created by Husband and Wife. Tenancy by the Entirety offers the right of survivorship. Neither spouse may transfer or convey title to a third person without consent of the spouse. Title converts to Tenancy in Common upon divorce.   COMMUNITY PROPERTY   Title to property deemed to be owned together by both spouses regardless of who purchased the asset until separation or divorce. The major characteristics of holding title by Community Property are basically governed by Community Property states in which the spouses are domiciled during the marriage. As a general rule, most property acquired by either spouse during the marriage and while domiciled in the community property state is deemed to be community property and owned jointly by each spouse. Generally there are a few exceptions, but you need to consult with each Community State: Property received by one spouse through gift or inheritance. Property received through separate property owned by the spouse outside the community property rules, i.e. rents on separate investment real estate. Through ownership by some other legal entity: Partnership Trust Corporation Limited Liability Company   Community states are: Arizona California Idaho Louisiana Nevada New Mexico Texas Washington

Asset Protection, Irrevocable Trust

Asset Protection, Joint Tenancy and Intentionally Defective Irrevocable Grantor Type Trust

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Why Joint Tenancy is bad advice from lawyers? Why Joint Tenancy has no Asset Protection? The alternative is Intentionally Defective Irrevocable Grantor Type Trust.     Watch the video on Asset Protection, Joint Tenancy and Intentionally Defective Irrevocable Grantor Type Trust   Like this video? Subscribe to our channel.   Ask any lawyer, accountant, life insurance agent, financial planner, mortgage brokers, stock brokers, or any lay person for his definition of asset protection and he will likely tell you that it’s the positioning of your assets against potential creditors who can sue you for typical negligence.   My definition is beyond the mere positioning of assets. It’s the preservation of your current and future lifestyle against potential frivolous lawsuits, the probate process, the estate tax, and the nursing home spend-down.   Asset protection is protecting you against anything that can take money out of your pocket, including: A potential creditor and his very clever lawyer for age discrimination, racial, gender, religious, sexual harassment, gossip, malpractice, product liability, environmental, personal perceived or real injury, divorce, and a host of other real or manufactured reasons. The U.S., State, and Local government through the imposition of income taxes, gift taxes, inheritance taxes, state and excise taxes, property taxes, business taxes, gasoline tax, cigarette tax, telephone access fees, business licenses, dog licenses, trash collection fees, and a host of other fees. Many attorneys unwittingly recommend common ways that do not protect assets. The Revocable Trust, otherwise known as the Revocable Living Trust is not worth the paper it’s written on. The revocable trust is simply that “revocable” anything created by the owner with power to undo has the power to do, i.e. lose it in a lawsuit. Even simple things as holding title to real estate.   What is Joint Tenancy?   Most attorneys do not understand the legal consequences of owning property as “Joint Tenancy”, also known as Joint Tenancy with the right of survivorship, is simply bad advice. Owning property as “Joint Tenants” gives each member (husband and wife, possibly with other co-owners) the right to use the “whole” property with rights to occupy the entire property, with stocks, or bank accounts, and the right to SPEND THE WHOLE AMOUNT.   Joint Tenancy gives the right to “each person” to transfer the interest in the property WITHOUT ASKING PERMISSION from the other co-owners. The survival rights, such as in when a Joint Tenant dies, means the share of the deceased Tenant automatically becomes that of the other co-owners.   Joint Tenancy is the most common form of co-ownership for many assets such as: Bank accounts Brokerage accounts Real estate Why is Joint Tenancy used?   So why use Joint Tenancy? The answer is simple. It’s easy to set up a self-induced high ownership in their name leading to misguided misinformation and not requiring the services of an attorney. Consequently, when a joint co-owner dies, the entire asset becomes that of the other co-owners. The problem is that Joint Tenancy is subject to the full loss in a lawsuit. So, if one of the co-owners gets sued and loses, the entire asset is at risk and may cause the forced sale of the asset to satisfy the claim. You should not hold title to any asset as a Joint Tenant with right of survivorship. Never rely on co-ownership as a way to protect your assets. It doesn’t work.   What is an “Intentionally Defective Irrevocable Grantor Type Trust”?   The preferred method of holding all valuable assets is through an Irrevocable Trust or an Intentionally Defective Irrevocable Grantor Type Trust.   The “intentional” defect in the Trust Agreement arises because the trust instrument is “intentionally designed” for the “Grantor” to be the deemed “Owner” for income tax purposes under Internal Revenue Code sections (IRC) 671- 678 but completed for gift and estate tax purposes under IRC 2036- 2038 and out of the estate for Estate Taxes.   A Trust is nothing more than a private Contract between the Owner, the Trustee, for the benefit of Beneficiaries which can include the original owner, his spouse, his children, and anyone else the owner desires to include in his beneficiary stream.   What is a “Grantor-Type Trust”?   The “Grantor-Type Trust” is a tax loophole. The IRS considers these type of arrangements as disregarded entities, meaning that the IRS will impose a tax on the nearest person it can get it’s hands on. The income and expenses pass through to the Grantor on his form 1040. It’s tax neutral. For tax purposes the IRS does not care who pays the taxes, as long as someone pays the taxes. For the IRS’s convenience, the IRS deems that the Grantor is the Taxpayer and looks to the Grantor to pay the taxes.   What do you mean by “Intentionally Defective Trust?”   The Intentional Defective Trust is “irrevocable” for asset protection purposes. The Grantor repositions his assets by transferring his assets to the Trust by gift or by some other device of equal value in order to avoid fraudulent conveyance. Assets repositioned to the Defective Trust, when designed with an Independent Trustee, delineates absolute ownership from the Grantor to the Independent Trustee. Because of the independence of the Trustee, the owner will avoid frivolous lawsuits, eliminate the probate process, and eliminate the estate taxes.   To learn more about how you can use an irrevocable trusts and discuss joint tenancy, co-ownership of assets, revocable living trusts and create a solid asset protection system call Estate Street Partners 888-93-ULTRA (888-938-5872).

Irrevocable Trust

Disclaimer: Estate Street Partners, Ultra Trust

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Disclaimer: Estate Street Partners   If you do not agree with this disclaimer, please leave this website. This website is provided to you (the recipient) with the understanding the publisher (Estate Street Partners, LLC) is not engaged in rendering legal, accounting, tax, or other professional opinions. This website does not constitute the rendering of legal advice or services. This website is intended for informational use only and is not a substitute for legal advice. State laws within the United States and countries outside the United States vary, so consult with an attorney in all legal matters. This website was not prepared by a person licensed to practice law in any state within the United States or in any country outside the United States. The publisher (Estate Street Partners, LLC) specifically disclaims any liability, loss of risk, personal or otherwise, incurred directly or indirectly as a consequence of the use and application of any of the information contained in this website. In no event will the editor, publisher (Estate Street Partners, LLC) or distributor of this website be liable to you (the recipient) for any amount greater than one United States dollar (US$1.00). If you do not agree with this disclaimer, please leave this website. Thank you!   Circular 230 disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.   This disclaimer described herein are current disclaimer policies as of Feb 12th, 2007. Estate Street Partners reserves the right to modify or amend this policy at any time consistent with the requirements of Estate Street Partners Principles. Appropriate public notice will be given concerning such amendments.

Irrevocable Trust

Limited Partnerships: General & Family Partnerships

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Traditional Limited Partnerships & Family Limited Partnerships: Pros and Cons. A Look at Other Trusts, Foreign Deferred Compensation & Private Banks   The concept of a trust was first used in Anglo Saxon times and is a contractual arrangement whereby property is transferred from one person (The Grantor) to another person or corporate body (The Trustee) to hold the property for the benefit of a specified list or class of persons (The Beneficiaries).   Traditional Limited Partnerships Traditional Limited Partnerships have been OVER-MARKETED as wealth transfer devises. Family Partnerships are RED FLAGS for the Internal Revenue Service for abusive tax-free WEALTH TRANSFERS. General Partners of Family Partnerships are exposed to frivolous lawsuits, court judgments, and creditor seizures. The problem is avoided if the FAMILY, LLC is the General Partner or the Family Limited Liability Company (FLLC) is substituted for the partnership. What’s a Family Limited Partnership? (FLP) How assets are transferred amongst family members A Family Limited Partnership is a standard partnership which includes only family members. Thus, the word “Family” Partnerhip. As in traditional partnerships, there’s a General Partner and Limited Partner. With the FLP, the parents are the General Partners, retaining 100% control over the assets and 100% of the liabilities from a potential frivolous lawsuit. The children as Limited Partners, are the silent partners with no control over the assets and no liabilities in case they get sued. Family partnerships have been widely over marketed as the “devise of choice” for transferring the “family business” and other highly appreciated assets tax-free from parents to their children. How it works: The older generation (parents) become 2% owners as “General Partners” in a Family Limited Partnership. Over a period of time, by “gifting” limited partnership interests, the children own 98% as limited partners. End result: Highly appreciated assets are effectively transferred from the estate of the “parents” taxable @ 55% plus state taxes, to the children ” tax-free.” The IRS considers these arrangements “abusive” when overzealous practitioners “over-claim” two commonly used discounts in the valuation of underlying (highly appreciated) assets in Estate Tax Valuations. The IRS comes down significantly hard when these arrangements are made over a “death bed.” The two valuations are: Lack of marketability discounting, typically 15% to 35% due to a limited market for the business or the assets. Limited minority interest discounting, typically an additional 15% to 35% due to the minority position in the business or underlying assets. Combined, these two discounts can amount up to 70% or even more. How much, is too much? Example of the ABUSE: You and your spouse own a piece of commercial real estate with a Fair Market Value of $2million. You and your spouse, “gift” (98%) of your real estate to the Family Limited Partnership (FLP) to your children as Limited Partners while retaining (2%) as the General Partners. Please note: as General Partners, you have retained 100% control and all the potential liabilities. Certain Practitioners – The IRS comes down hard if the arrangements are made over a ‘death bed’, so why wait? Promoters will have you believe that you have “just reduced” your taxable wealth by up to 70% or more of it’s value? From $2million down to $600,000 or less, while retaining 100% control? The problem with limited partnerships The disadvantages of the Family Limited Partnership: Gifted property does NOT receive the “stepped-up” basis treatment that bequeathed property receives. Therefore the children, who have received “gifted partnership interests” may face unexpected capital gains tax liability. General Partners are not insulated from potential lawsuits, judgments, or creditor seizures. This problem can be avoided if the General Partner is The ULTRA TRUST? or the FAMILY, LLC is used, in lieu of the Family Limited Partnership. If you have an interest in FAMILY BUSINESS SUCCESSION PLANNING, please contact us, there are several available devises addressing the following important issues: Ownership. Which of the FAMILY members will become the future owners of the business? What method or combination of financially engineered methods is the most effective in consideration of asset/wealth preservation, elimination of probate, deferral of capital gains taxes, elimination of estate taxes, and reduction of earned income taxes. Control. Which of the FAMILY members will become the future managers. Not all FAMILY members have management skills. Dispute resolution. How will FAMILY members deal with potential disputes? What mechanism is fair to controlling and non-controlling FAMILY members. Employment. Which FAMILY members will be employed by the business? Better asset protection/wealth preservation   What’s a Trust?   We have a number of asset protection / wealth preservation strategies, elimination of probate, elimination of estate taxes, and other devises for deferring possibly reducing your income taxes. The ULTRA TRUST? meticulously crafted and financially engineered to hold your personal residence and all your other valuable assets with NO downside to your personal income tax return, form 1040 while insulating you from potentially damaging lawsuits. The MEDALLION TRUST? designed to implement your Gift Tax / Unified Estate Tax Credit LOOPHOLE of $675,000 or $1,350,000 jointly with your spouse. The VERTEX TRUST? for your deferral of Capital Gains Taxes, elimination of probate and all inheritance taxes while insulating you from potential frivolous lawsuits. The Family Limited Liability Company (FLLC). A much stronger financial devise than the partnership. There are there are NO General Partners with the Family Limited Liability Company (FLLC). General partners of a Family Limited Partnership have NO asset protection. The Foreign Deferred Compensation Plan defers “earned income” taxes on W-2 income or other (((income streams))) rents, commissions, royalties, day-trading, etc. The Foreign Private Bank properly capitalized, “class A” foreign bank is the equivalent to Fleet, BankBoston, BankAmerica. Anything that they can do, your Class “A” Foreign Bank can do. Practically a license to printing your own money. Not available to IRS defined US Persons.

Irrevocable Trust, Trusts, Uncategorized

Advantages of Trust

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Advantages of a Trust   Trusts are a powerful tax planning tool but they also have many other uses which are of equal if not greater importance. A properly drafted and managed trust can confer advantages under any or all of the following:   Asset protection   Trusts can be used very effectively to protect assets. In simple terms, assets transferred to a trust no longer belong to the grantor and therefore if the grantor experiences financial problems the trust assets cannot be attached by the creditors of the grantor due to bankruptcy, dissolution of marriage, or a court award made as a result of, for example, a professional negligence claim. Thus, although the grantor may be declared insolvent, a portion of his assets might be safeguarded by the trust structure.   Tax planning   Assets transferred into a suitably drafted trust structure are, in simple terms, no longer considered as belonging to the grantor and therefore the income and capital gains generated by those assets are taxed according to the rules in the country of residence of the legal owners – the trustees.   Inheritance tax would normally be eliminated because the trustees would not die upon the death of the grantor. Generally speaking, trusts can be extremely effective for tax planning purposes and a correctly structured and administered trust will produce substantial savings in income tax, capital gains tax and inheritance tax/estate.   Avoiding the expense and delays of the probate process   The death of the head of the family will usually result in major disruption of the family estate whether or not there is a will. In most common law jurisdictions the estate must go through the probate procedure with much consequential delay, expense, publicity and upheaval.   By establishing a trust, probate can be avoided because “death” will have no effect on the trust property which will continue to be held and managed in confidence by the trustees in accordance with the terms of the trust.   Confidentiality   Assets in a trust are completely confidential, it’s a private matter. Assets NOT in a trust, goes to probate, with or without a will. The “probate procedure” a public procedure. A complete list of all the property owned by the deceased becomes a PUBLIC RECORD in order that that property can be assessed for estate taxes and in order that the property can be legally transferred to the executors who may then distribute to the legal heirs of the deceased according to the will.   This probate procedure is therefore entirely unsuitable for those who wish to keep details of their assets confidential.   Avoiding forced heirship   In non-common law jurisdictions there will often be questions of forced heirship to consider i.e. the deceased will not be permitted to leave his property to anyone he wishes on his death. This problem of forced heirship can be avoided by a properly drafted trust.   Estate planning   Many people do not want their assets to pass outright to their heirs, whether chosen by them or as prescribed by law, and prefer to make more complicated arrangements. These might involve providing a source of income for a widow for life, making provision for the education of children or providing a fund to protect members of the family in the event of sudden illness or other disasters. A trust is probably the most satisfactory and flexible way of making arrangements of this kind.   Protecting the weak   A trust provides a vehicle by which a person can provide for those who may be unable to manage their own affairs such as infant children, the aged, the disabled and persons suffering from certain illnesses.   Preserving family assets   Preserving the family assets or increasing them is often a motive for setting up a trust. Thus, an individual may wish to ensure that wealth accumulated over a lifetime is not divided up amongst the heirs but retained as one fund to accumulate further, with provision for payments to members of the family as the need arises while preserving some assets for later generations.   Continuing a family business   A person who has built up a business during a lifetime will often be concerned to ensure that it continues after death. If the shares in the company are transferred to trustees prior to death a trust can be used to prevent the unnecessary liquidation of a family company. The terms of the trust will ensure that the individual’s wishes are observed. These might include provision for payments to be made to members of the family from dividend income received by the trustees but that the trustees retain the shares and keep the company running save in special circumstances justifying sale of control or liquidation. This may be particularly advantageous where the family members have little business experience of their own or where they are unlikely to agree on the correct way to manage the business.   Gaining flexibility   The best laid plans can, in a changing world, rapidly become obsolete. A discretionary trust can, however, be structured to provide for a system of management of property that is capable of rapid change as circumstances demand. An irrevocable trust, is an asset protection fortress when it’s the owner of your sub “S” stock, a limited liability company, the general partner of a limited partnership, the general partner of a family limited partnership, the shareholder of an international business corporation, or other recognized legal entities.

Asset Protection, Irrevocable Trust, Medicaid

Medallion Trust: Irrevocable Trust Asset Protection

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“The ancient Egyptians built elaborate fortresses and tunnels and even posted guards at tombs to stop grave robbers. In today’s America, we call that estate planning.” — Quotation from Committee Chairman Bill Archer, House Ways and Means, during the debate on eliminating “death” taxes. A simple will, just isn’t enough! Your government wants two-thirds (2/3). Rocco Beatrice The Dreaded Phase-In of the 2001 Tax Act has increased your need for Estate and Gift Tax Planning. see table below A TRUST is nothing more than a private CONTRACT. The purpose of a TRUST is to create an “Artificial Legal Person” to hold, preserve, and manage your wealth for the benefit of your heirs. The Medallion Trust® (Registered Trademark of Estate Street Partners, LLC) In anticipation of congress making additional changes to the estate tax and gift tax rules, the MEDALLION TRUST® has been financially engineered to take advantage of your “legal exceptions/exemptions loopholes” – by claiming your tax exemptions, now!!! You can give away up to $1,000,000 of your wealth this year ($1,000,000 for the year 2002 to 2009, and back to $675,000 in 2010 (see table below). NOTE: The Dreaded Phase-In of the 2001 Tax Act has increased your need for Estate Tax and Gift Tax Planning. By “GIFTING” your assets to the MEDALLION TRUST® and by filing IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) you can claim your unified credit against taxes that would normally be paid by your estate. Thus, for the year 2006 you and your spouse each can “GIFT” up to $1,000,000 ($2,000,000 combined) of your wealth without incurring any tax liability. (For the new Tax Act, see below) Tax Neutral There’s absolutely no downside risk with the MEDALLION TRUST®. By engineering your assets around “legal exceptions and tax exemptions” you can avoid unwanted taxable results by claiming your loophole, now! ESTATE – The Fair Cash Value of anything (in your name) on the date of your death. ESTATE TAX – Anything in your estate (in your name) is taxable up to 55% with small reductions under the new Tax Act of 2001. Anything NOT in your name, is NOT taxable. PROBATE – Anything in your Trust, avoids probate. Anything NOT in your Trust, goes to probate, with or without a will. WILL – A listing of your wishes to be executed on the date of your death. A will does not avoid probate. TRUST – An “artificial legal person” created by private contract. Congress: “Death and Taxes” Various tax proposals were being bandied about, including House Ways and Means Chairman, Bill Archer, who said that he was “pushing” to “g-r-a-d-u-a-l-l-y phaseout” the death tax within the next 10 years. (The word “gradually” has been emphatically stretched out.) “Death by itself should not trigger a tax” said Chairman Archer. The Dreaded Phase-In of the 2001 Tax Act has increased your need for Estate Tax and Gift Tax Planning. (see table below) The federal government has done all it can to ensure they become your largest “heir” by collecting estate taxes from 37% to 55% on 100% of your wealth. The 2001 Tax Act stretches out a small reduction but not eliminated. Only Japan has a higher rate of estate taxes at 70%. Germany takes a maximum of 40%, while Australia and Canada, take nothing. “I believe, we all should pay taxes with a smile. I tried, … but they wanted cash.” -anonymous, The Penguin Dictionary of Humorous Quotations Add it all up!!! Federal tax, state tax, probate fees, legal fees, accounting fees, appraisal fees, administrative and executor fees, and etc. fees; it could easily cost you 70 to 80% of you hard earned estate. You can avoid these unwanted results. Some statistics on death & transfer taxes: 13 times in 25 years, congress has changed the rules. Congress is always tinkering with the “Death Transfer Tax.”  They believe, they know better than you, how they should spend your money; before and after your death. 43% federal death tax rate or $2,170,250 owed by a California resident who died with a $5,000,000 estate, plus an additional 10% payable to the state of California. (source: CA-Probate.com) 70% – percentage of Americans who die without a will. (source: Wealthcare.com) 35% – the percentage of widows aware of the 55% federal estate tax. 60% to 85% – the percentage of gross household income that you will need for your retirement to sustain your current lifestyle. (source: Wall Street Journal) $23,500,000,000 – the amount of tax dollars collected from 1998 estate tax returns filed. (source: US Treasury Department) The MEDALLION TRUST® was meticulously crafted and specifically engineered to take advantage of your “Gift” and “Estate Unified Tax Credit.” This legal exception/exemption (LOOPHOLE) is presented in the table below. The New 2001 Tax Act: 1 – OLD LAW – this is the old law where the exemption amount that could have been gifted per person and not subject to a gift tax or estate tax. 2 – ESTATE TAX – in effect 2002 and thereafter. This estate tax exemption is the amount that may be exempted if you die in that year. 3 – GIFT TAX – in effect 2002 and thereafter. This gift tax exemption is limited to an individual’s lifetime total of $1 million. 4 – ESTATE TAX MAX – the maximum percentage of estate tax      If you know the year you’re going to die you may be able to maximize your estate and gift taxes. CONGRESS is always tinkering with the “Death Transfer Tax” by eliminating, reducing your legal exceptions loophole, or who knows? Why take this unnecessary risk? You can avoid these unwanted results. There’s NO downside to implementing your MEDALLION TRUST®. The Dreaded Phase-In of the 2001 Tax Act (presented in the above table) has increased your need for Estate Tax and Gift Tax Planning. The new Tax Act created two layers:One for the transfer of your wealth at death;The other for how much you can give away in your life-time.Can you trust

Irrevocable Trust, Trusts, UltraTrust

Vertex Trust: Irrevocable Domestic Non Grantor Trust

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The VERTEX TRUST® is an Irrevocable Domestic Non Grantor Trust for deferring capital gains taxes on highly appreciated asset(s) up to 20 years within the United States; 30 years or more, if your transaction is taken internationally. “Defer” means to “postpone.”   Based on the mortality tables supplied by the IRS, your capital gains taxes may be postponed (i.e. to your age 75, 80, 85, 90, etc.); thus deferring your taxes up to 20 years domestically and up to 30 years or possibly longer, internationally.   When your VERTEX TRUST® is combined with an international platform, your Domestic Irrevocable Non Grantor Trust, will postpone your capital gains and all income taxes on re-investments. When correctly engineered and implemented by a team of qualified competent professionals, such as Estate Street Partners, the possible results are permanent tax deferral of capital gains taxes, permanent deferral of income taxes on accumulated earnings, elimination of probate, elimination of transfer taxes and inheritance taxes.   VERTEX TRUST® (Registered Trademark of Estate Street Partners, LLC)   “Knowledge” is our most important “product.”

Asset Protection, Irrevocable Trust, UltraTrust, Uncategorized

Ultra Trust: Benefits of Irrevocable Trust Asset Protection

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T. S. Eliot said:”Never confuse information with knowledge.”   Information: More than 80,000 lawsuits are filed daily in the United States. Holding any asset in your name or jointly… is extremely, extremely risky.   Knowledge: An ULTRA TRUST® will remove your probability of becoming “a statistic.”   What’s a Trust?   What’s an ULTRA TRUST®… and how do I get one?   The ULTRA TRUST® is a powerful new asset/wealth protection devise, meticulously crafted and engineered to hold your primary residence and all your other significant valuable assets, with total positive income tax benefits, i.e. real estate tax and mortgage interest deduction on your Federal form 1040.   Legally, disinherit the government. They will receive no Federal estate taxes. Period! ONE SIGNATURE, ONE DOCUMENT, The ULTRA TRUST® will insulate you from potentially harmful lawsuits, eliminate the probate process and all inheritance taxes on your estate.   The ULTRA TRUST® when properly implemented by a knowledgeable professional, is simple to put in place, inexpensive, with no dollar limitations. It eliminates the need for a separate insurance trust. It holds your investments, other real estate, title to your automobiles, significant if you have minor age drivers. It may defer capital gains taxes, for up to 20 years.   If you have ever considered how to protect yourself from frivolous, or ill motivated, expensive lawsuits, the ULTRA TRUST® is a powerful tool. Put knowledge to work. Call me at (508) 429-0011 for a no charge, no obligation, productive discussion of your needs. Years from now, you’ll look back on one of the wisest decisions you ever made.   The ULTRA TRUST® when combined with a Limited Liability Company is a financial asset protection fortress; you can become judgment proof.   We have prepared a concise report on the legal and tax benefits of the ULTRA TRUST® including all the Dreaded Phase-Ins of the 2001 Tax Act. For your detailed report and see if you qualify for the ULTRA TRUST®   Click on the following link: & Buy Your Jam-packed information to Protect & Preserve Your Wealth

Irrevocable Trust, Trusts

Living Revocable Trust

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   Watch the video on Living Revocable Trust   Like this video? Subscribe to our channel.   A Living Trust or Revocable Trust, or a Revocable Living Trust, are the same Trust. The word “revocable” says it all. The “Grantor” the guy with the assets, transfers his assets to a “Trust” where he is the “Trustee” for the benefit of all “Beneficiaries”, which includes himself and others. In other words he has kissed his hand and declares himself to be the “Pope.”   The revocable trust is not worth the paper it’s written on. The revocable trust does not protect the assets from potential frivolous lawsuits. The revocable trust does not eliminate the estate tax. The revocable trust was designed to avoid the probate process but nothing else.   SO, WHAT’S A “TRUST”?   A “Trust” is nothing more than a contract. The concept of a trust was first used in Anglo Saxon times and is contractual arrangement whereby property is transferred from one person (The Grantor) to another person or corporate body (The Trustee) to hold the property for the benefit of a specified list or class of persons (The Beneficiaries).   Although a trust can be created solely by verbal agreement it is normal for a written document to be prepared which evidences the creation of the trust (the Trust Deed), sets out the terms and conditions upon which the trust assets are held by the Trustees and outlines the rights of the Beneficiaries. In essence, a trust is not dissimilar to a will except that assets are transferred to trustees during lifetime rather than those assets being transferred to executors on death. The trust deed is analogous to the deed of will.   WHAT’S A “GRANTOR”?   He’s the guy with the buck; the owner of the asset(s). The grantor’s motivation is to get asset(s) out of his name for either some or all of the following:   Asset protection / wealth preservation Reduce potential frivolous lawsuits Elimination of the “probate process” Elimination of estate taxes To gain some tax benefit or some other tax deferral benefit. If the “Grantor” initiates the trust (contract), it’s called a “Grantor Trust,” otherwise it’s called a “Non-Grantor Trust.” To me, it’s just legal garbage so lawyers can charge you more.   If the “Grantor” wants to retain certain control over his asset(s), it’s called a “Revocable Trust”; otherwise, it’s an “Irrevocable Trust.”   Revocable / Irrevocable has significant asset protection and tax differences.   “Revocable,” is like the kid next door that brings the ball to play basketball with the other kids. Everything is fine, as long as he makes the rules, and he makes the rules as he goes along. If you don’t agree with the rules as he makes them up as you play, he takes the ball and goes home. The ball game is over.   LIVING TRUSTS ARE OUTRIGHT DANGEROUS   The Living Trust can destroy your estate in the event of a lawsuit, serious illness, or elderly care. One name given to a “revocable” trust is the “Living Trust” The sole purpose of the Revocable Living Trust is to “eliminate the probate process.” Assets in a trust, avoids probate. Assets that are NOT in a trust goes to probate, with or without a will. The living Trust is outright dangerous for asset protection, wealth preservation, and estate tax elimination. It’s obsolete for assets greater than $1,000,000. With the Living Trust the owner of the assets retains significant power over his wealth and will NOT insulate assets from the lawsuit explosion. There’s absolutely no tax benefit, no asset protection and no wealth preservation benefits with the “Living Revocable Trust.”   THE “TRUSTEE”   The Trustee is the guy who manages your trust assets. Great care should be taken in your selection of your trustee. The trustee is bound by the trust document (contract) and he has a duty to protect trust assets for the beneficiaries. The independent Trustee manages, holds legal title to trust assets, and exercises independent control.   The trustee can be your lawyer (worst person you would ever want to trust), your accountant, best friend, or anyone you TRUST who’s not a relative by blood or marriage. You should not have more than one trustee, however, I usually recommend one trustee and one trust protector in all cases of $750,000 or more.   ACCOUNTABILITY OF TRUSTEE   The law imposes strict obligations and rules on trustees including a duty to account for any benefits the trustee may have gained directly or indirectly from a trust. This goes beyond fraudulent abuse of position by a trustee.   There is a basic rule that a trustee may “not” derive any advantage directly or indirectly from a trust unless expressly permitted by the trust; for example, where he is a professional trustee and the trust provides specifically for a right to make reasonable charges for services. However, full disclosure of the basis and amount of charges is required.   The trustee of an “Irrevocable Trust” has sole discretion over trust assets. Your selection of your trustee must be a carefully planned decision.   The significant item to remember is that an “Irrevocable Trust” gets the assets completely out of your (Grantor’s) name and in return you get complete asset protection, elimination of probate, elimination of estate or inheritance taxes, in certain cases a tax deduction for the assets contributed to the trust, and finally, under certain conditions other uncommon tax benefits not otherwise available. Did I mention it’s the most tax efficient way to transfer your wealth to your next generation?   Duty of trustee is to obey the trust document for the benefit of beneficiaries.   The most important rule relating to the duties of a trustee is that requiring them to obey the directions in the trust deed both with regard to the interests of the beneficiaries (i.e. who is entitled to what) and with regard to the administration of the trust

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