Legal Question in Wills and Trusts in California
FLP, Child Irrevocable Trust & LLC or C-Corp
I own my home unencumbered. I own my parents jt tenancy unencumbered. I am starting a small home based business, located in CA, but operating nationwide. I have another high risk professional liability business that I presently operate. I am a single parent, unmarried. I have a 6 year old. I am in the process of purchasing rental Real Estate in other states, both in my IRA and outside my IRA. I am seeking the best asset-protection strategy I can figure out. What are the benefits/drawbacks of each entity, and how would I set up an estate planning/asset protection strategy best suited for my situation. I don't want to lose the 250K IRS homeownership benefit should I sell my home, so are there any suggestions for total asset protection under the circumstances. Also, what are the benefits/drawbacks to a minor's trust, can I open one for my son now, how much can I give him each year, can I put my biz equipment in it, lease it back, pay the income to the trust and use the income for his benefit. What are the parameters for using the income in an irrevocable trust for his benefit, e.g., child care, disneyland, school supplies, birthday parties. What are the acceptable parameters.
2 Answers from Attorneys
Re: FLP, Child Irrevocable Trust & LLC or C-Corp
That's a lot of questions to be answered here. Unfortunately, the best answer is that it depends. It depends on what you plan to do in the future, how you choose to pay taxes, do you want everything under your name, a corporation name, a family trust or a business trust. There are many ways to accomplish most of the goals that it seems you are aiming for, but we would actually need to sit down and discuss some of your wants and needs.
I recommend you talk to Tony Grossman at our firm. He can go over this with you in great detail, much better than I can here on this forum.
The number listed by LawGuru is correct and we can also be reached through our firm's website at No-Probate.com.
Scott
Re: FLP, Child Irrevocable Trust & LLC or C-Corp
You will need to engage an experienced asset protection attorney with tax expertise to obtain answers to your questions and develop a sound strategy.
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