Protecting Your Biggest Asset - Your Property

When dealing with asset protection, a huge concern is property ownership.  At times, a trade-off is necessary between the control of the property, the tax benefits desired and protection wanted.

In a common scenario, a future husband and wife may own a property as joint tenants in common but wish to maximize their creditor protection and own it as tenants in the entirety.  This transfer may be useful in that they may choose to change ownership to tenants by entirety when they get married.  This change will offer the following benefits:

• give them the ability to have an undivided interest in the property,
• creditors will have limited ability to force distribution,
• the property will automatically transfer to the survivor upon death of one,
• a filing of bankruptcy by one may keep the property secure from creditors by the other.

However, the conveyance may cause a spouse the loss to individually transfer ownership, the property would lose its separate property status, and the entire property would become subject to the surviving spouse's creditors and the whims of the surviving spouse.

While this is just one issue and there are many ways to convey ownership of property, whether real or personal or utilizing corporate ownership or beneficiary interests in trust, there are many issues that should be reviewed and possibly addressed prior to making the transfer.  This runs true even for future business partners as well as marriage and other new ventures.

It is always highly recommended that one should consult with professionals who are experienced and skilled to establish a plan that addresses one's needs, desires and goals.

Business Formation - Choosing the Right One for Your Company

There are many options to choose from when establishing a new business.  Business entities range from simple sole proprietorships, partnerships, corporations, trusts, limited partnerships or limited liability companies to complex entities such as multiple tier stock corporations. The different types of entities each have different managerial control, liabilities, asset protection and tax consequences that should be reviewed and evaluated before proceeding.

Further the choice of the proper business entity must meet its proposed business particularities. The nature of the proposed business and the laws governing that venture may require certain structures to be used to proceed. Additionally one’s individual circumstances is important to the entity choice, since a personal bankruptcy can also risk the loss of your business and its assets too.

One should confer with a legal professional experienced in your field of business to determine what entity choice is appropriate for you.