Our special expertise at Klueger & Stein, LLP is structuring the ownership of your assets to make it difficult, or even impossible, for others to take them away. Creditors, plaintiffs, unhappy business partners, state and federal agencies - all can threaten those assets. Our asset protection planning can reduce, or even eliminate, those threats long before they appear. Our clients tell us that the peace of mind that asset protection brings is priceless.
Many debtors consider selling their residence to protect the equity. However, they may not want to actually move out. To accommodate these conflicting desires, the sale and leaseback of the residence to a friendly third-party on a deferred installment note may be the solution.
Under this structure, the debtor sells the residence to a friendly party and takes back a promissory note. The promissory note is usually structured as a long-term balloon note. The debtor then leases the property back from the buyer and continues to live in his old house. Instead of owning a house, the debtor now owns a promissory note, an asset that is a lot less desirable to a creditor.
This structure works only so long as the debtor can establish the legitimacy and the arm's-length nature of the sale. Income tax consequences of the sale, and possible property tax consequences on the transfer of ownership should be considered.
An arm's-length cash sale is the best way to protect the residence (and the equity in the residence) because it is much easier to protect liquid assets (sale proceeds) than real estate. While this technique affords the best possible protection, it is also the most radical and may result in additional income taxes.
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New Video Podcasts: If you really want to learn about asset protection planning, pour a cup of coffee and tune in to our Asset Protection Podcasts. These recent seminars taught by asset protection specialists Jacob Stein and Bob Klueger are available online.
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Mr. Stein is one of California's best known attorneys, teaching dozens of legal seminars each year on the subjects of asset protection and...
Mr. Klueger is one of the very few private attorneys in America who has argued a tax case before the United States Supreme Court...
RobbReport.com speaks with asset protection specialist Jacob Stein, Esq. of Klueger & Stein, LLP in Los Angeles about the importance of protecting valuable assets, such as your private residence, rental real estate, investments and retirement plans.