Asset Protection – The Frequently Asked Questions: Part 1 – Los Angeles Asset Protection Plan and Income Tax Planning Attorney Bruce Givner

by Bruce Givner on April 30, 2013

What is Asset Protection Planning? - Asset protection is a process designed to put hurdles between your valuable assets and the claims of a future creditor. It is not the same as estate planning or tax planning. However, a good asset protection plan attorney may use these.

How does Asset Protection Planning work? – The basic premise of asset protection planning is to presume that any asset owned can be seized by a creditor. The goal of asset protection planning, then, is to make it more difficult for some future creditor to take your assets.

Do I need protection if I have insurance? Simple answer, yes. Insurance will not cover all claims and will not cover claims beyond the policy limits.

What are the tax consequences, if any, of asset protection planning? If the vehicle used to protect the asset(s) is properly structured, the asset protection should be tax neutral. Structures used in asset protection are either disregarded for income tax purposes, or are flow-through entities like partnerships or S corporations.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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