Posted on: 22nd Feb, 2007 07:00 am
my husband and I are physicians and buying our first home to live in as our prinipal residence. I read to put our home in a land trust/LLC in case we ever get sued for malpractice.
Is this a good idea for asset protection?
Is there a better one?
Is the interest tax deductable?
Is this a good idea for asset protection?
Is there a better one?
Is the interest tax deductable?
Yes if the assets are in the name of the LLC then even if you are sued the assets in the LLC will not get affected.
Kathleen, an LLC is treated similarly to a partnership. It means that no income tax is paid by the LLC. Every kind of income & deductions flow through to its members. The members then report it on their personal tax returns.
There are some other methods like a family limited partnership, offshore trust or a family savings trust which are used for asset protection.
But one thing you should know that such a transfer can be considered as a fraudulent transfer.
If a creditor's claim is earlier to the date property is transferred in to an LLC/trust, or if it is considered that the transfer was done to avoid paying the creditor then the court can consider it as fraudulent transfer.
But one thing you should know that such a transfer can be considered as a fraudulent transfer.
If a creditor's claim is earlier to the date property is transferred in to an LLC/trust, or if it is considered that the transfer was done to avoid paying the creditor then the court can consider it as fraudulent transfer.
Welcome Ginakathleen.
The most common asset protection technique is an insurance policy. You can protect your assets by purchasing an insurance policy against the total assets. But this may not cover all possible risks that you come across. The amount of policy purchase may not be sufficient to fulfill your needs. The insurance company may also become insolvent. This is why people go for specific asset protection techniques such as homestead or trust. The former protects your home from creditors' claim while the latter lowers your federal transfer tax liability.
Thanks.
The most common asset protection technique is an insurance policy. You can protect your assets by purchasing an insurance policy against the total assets. But this may not cover all possible risks that you come across. The amount of policy purchase may not be sufficient to fulfill your needs. The insurance company may also become insolvent. This is why people go for specific asset protection techniques such as homestead or trust. The former protects your home from creditors' claim while the latter lowers your federal transfer tax liability.
Thanks.
i am a physician and me and my husband own the home together,how can protect the property?
welcome sailajaanala.
are you facing problem regarding monthly mortgage problem. if you are facing problems regarding the mortgage payments then you should contact the loss mitigation department of the mortgage company asap. if you want to how can you avoid the foreclosure tap take a look at the article 17 ways to protect yourself from the foreclosure trap
hope it helps. let me know if you have any further queries.
are you facing problem regarding monthly mortgage problem. if you are facing problems regarding the mortgage payments then you should contact the loss mitigation department of the mortgage company asap. if you want to how can you avoid the foreclosure tap take a look at the article 17 ways to protect yourself from the foreclosure trap
hope it helps. let me know if you have any further queries.
Do your homework as one person said there are ways to penetrate an LLC and a good attorney will find them. I agree that an umbrella policy is more likely going to be a better route.
Also as far as I know and understand if you are financing the home there is little they can do if there is no equity. Now if you own it outright that is a different story
Brian
Also as far as I know and understand if you are financing the home there is little they can do if there is no equity. Now if you own it outright that is a different story
Brian
Fulfilling your business strategies requires far more than just filing your organizational documents. Whether your goals are Asset Protection, TNewsletterax Planning or Privacy Protection, these can be jeopardized when a company fails to organize and manage itself properly.I have also form an LLC online from Click Industries, Ltd.