The Problem: Often business owners want to segregate valuable assets from potential adverse liabilities generated in the operation of a business.
For example, a bakery will likely own: (1) equipment used in its operations; (2) the factory building and (3) a fleet of delivery trucks and vehicles. If all of these are owned by the same company, then liabilities arising from an accident involving the trucks could result in the loss of the factory building to satisfy a judgment. Read More
This SCIN-GRAT uses two well-known and documented techniques used to co-ordinate family gifting and tax efficiency.
The first is known as a Self-Cancelling Installment Note, or “SCIN” for reference. It is an installment note with a provision stating that if the Seller dies before the end of the note, then the note is deemed paid in full and the buyer need no longer make payments. The buyer pays a premium for this feature, a result of a “bargained for consideration” negotiation. Read More
I. Single Member LLC Asset Protection
A Debtor argued that the Bankruptcy Trustee acts merely for her creditors and is only entitled to a charging order against distributions made on account of her LLC member interest. However, the charging order exists to protect other members of an LLC from having involuntarily to share governance responsibilities with someone they did not choose, or from having to accept a creditor of another member as a co-manager. Read More