The Jamie Solow contempt incarceration case has caused a lot of people to write a lot of articles and offer a lot of opinions – most of which are completely inaccurate. The author, Howard D. Rosen, is one of Mrs. Solow’s attorneys, attended court hearings, testified, and can state with accuracy what actually transpired in this case.
Individuals should proceed with caution and utilize experienced counsel when titling new assets or transferring title to existing assets. This issue of the APN is the first of two parts addressing the most frequent failings of individuals attempting to implement do-it-yourself asset protection by titling/retitling assets.
On April 20, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was enacted into law. The stated purpose of the Act is to “improve bankruptcy law and practice by restoring personal responsibility and integrity in the bankruptcy system and ensure that the system is fair for both debtors and creditors.”
Because the US court system often is unpredictable, the key to truly effective asset protection is to remove the ability to reach the assets. If an offshore trust has been properly structured and implemented, and is holding cash and marketable securities offshore, it will be impossible for any creditor to reach those assets.
How do we go about protecting real estate, accounts receivable, equipment, and similar immovable assets (in this newsletter, we’ll call these “fixed assets”)? We have to make such assets unattractive to the creditor.
This issue was scheduled to be a review of Barbados. However, a decision in a recent case which may put at risk certain “do-it-yourself” protection techniques was handed down, and is discussed in this issue.
The use of limited partnerships in asset protection planning was generally discussed in Volume I, Numbers 3 & 4. In this issue we will take a more detailed look at how and why limited partnerships are used in asset protection planning, and the limitations of the limited partnership technique.
A client recently said, “My property is protected; my wife and I own everything as joint tenants with right of survivorship”. WRONG!