3 ways asset protection will help you guard your wealth - infographic
TRANSCRIPT
SOURCES:http://americasocietyap.org/http://americasocietyap.org/the-american-society-for-asset-protection-how we-help-business-owners.phphttp://americasocietyap.org/tips-for-business-owners-looking-for-asset-protection.phphttp://americansocietyforassetprotection.com/the-american-society-for-asset-protections-plan-to-protect-you-as-a-business-owner.phphttp://americansocietyap.org/how-the-american-society-for-asset-protection-is-not-another-scam.phphttp://www.examiner.com/article/what-is-asset-protection-and-are-asset-protection-kits-a-scamhttp://www.examiner.com/article/what-american-asset-protection-�rms-dohttp://www.linkedin.com/pulse/7-ways-your-business-protecting-assets-properly-hans-kirchhausenhttp://americansocietyforassetprotection.com/faqs.phphttp://www.investopedia.com/terms/a/asset-protection.asphttp://www.washingtonpost.com/news/wonk/wp/2014/04/15/did-you-just-overpay-or-underpay-your-taxeshttp://www.watsoncpagroup.com/kb/Is-There-a-way-to-avoid-Self-Employment-tax_74.htmlhttp://en.wikipedia.org/wiki/Homestead_exemptionhttp://en.wikipedia.org/wiki/Family_Limited_Partnership
FLP tax
LAWSUITS
Rental PropertyPurchased Price
$250,000
Property Value (25 Years Later)$1,250,000
PROTECTIONYOUR WEALTH
ASSET3 WAYS
WILL HELP YOU GUARD
PROPER ASSET STRUCTURE HELPS YOU SAVE ON TAXES
Asset protection is intended to protect an individual’s or business’s assets from creditor claims, while operating within the bounds of debtor-creditor law.
OVER 100 MILLIONLAWSUITS
Currently,
are pending the U.S.
A lawsuit is filed every 30 seconds.
Many businesses owners believe that once incorporated, their personal assests are protected, but thatʼs simply not the case.
Laws designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from death of the homeowner spouse.
Some areas do have homestead exemptions to reduce the value of the home that is subject to property tax.
These laws can vary by state.
A Professional Limited Liability Company (PLLC) can be used by professionals to isolate themselves from liability of other partners.
It is important for professionals to have personal and practice assets in LLCs and/or FLPs to be protected.
LLC laws specifically prohibit a lawsuit against the members for a claim against the business.
An LLC has a great deal of flexibility and can be taxed as a sole proprietor, partnership, S corporation or C corporation.
Some states do not allow licensed professionals to operate their professional practices as an LLC.
KNOWLEDGE OF HOMESTEAD LAWS
PROFESSIONAL LIMITED LIABILITY COMPANIES (PLLCS)
FLPs are a business structure frequently used to move family wealth from one generation to another with favorable tax treatment.
FLPs are typically holding companies, acting as an entity that holds the asset contributed by the family members.
Our Society achieves this mission by sponsoring the nation’s top lawsuit protection experts to present across the nation.
FAMILY LIMITED PARTNERSHIPS (FLPS)
LIMITED LIABILITY COMPANIES (LLCS)
A corporate veil can be easily be pierced in order to claim assets during a lawsuit.
Proper business structuring can protect your personal assets with no downside.
(Doesnʼt protect against property tax liens!)
(Making sure your professional is up to date with the latest laws in your state is essential).
A PLLC does not limit personal liability for malpractice, meaning assets can be taken to satisfy a judgement against the business for malpractice.
Businesses with an income of
in self-employment taxes.
2.7% - 4.6% OR $2,700 - $6,900
can save$100,000 - $150,000
Specific legal structure
CAN REDUCE YOUR CAPITAL
GAIN TAXES from real estate, stocks,
investments, etc.
John and Mary Smith purchased a rental property for $250,000.
25 years later the property value had
appreciated to $1,250,000.
Experienced asset protection experts use long standing methods to shield your business from lawsuits, such as:
If they sell the property for $1,250,00, they would pay capital gains taxes on $1,000,000. Their capital gains combined federal and state tax rate is 20%, which would result in a tax of $200,000 ($1,000,000 x 20%).
Total Sale Amount
OF YOUR ASSETS COULD BE THE LOST
to taxes and probate when you pass on?
A will simply isn’t enough, it requires a properly structured trust.
Gain
NET PROF IT NET PROF IT
BUSINESSINCORPORATED
Original Rental Property Purchase Price
Capital Gains Taxes($1,000,000 x 20%)
$1,250,00
($200,000)
$1,000,000
$800,000
*According to the institute for legal reform.
of small business owners have been
threatened or involved in a lawsuit.
43%
HOW DO ASSET PROTECTION EXPERTS MAKE A DIFFERENCE?
The concept of and strategies forGUARDING ONE’S WEALTH.
WHAT IS ASSETPROTECTION?
ASSET PROTECTION STRATEGIES HELP GUARD YOU FROM LAWSUITS
1 2
ASSET PROTECTION EXPERTS CAN ENSURE SUCCESSION OF YOUR ASSETS
PROPER BUSINESS STRUCTURING
3
If John and Mary first transferred the property into a charitable remainder trust (CRT)* and the CRT then sold the assets for $1,250,000, they would owe zero capital gains tax; and all $1,250,000 would go into the trust to be dispersed in alternate ways.
Total Sale Amount (Sold by CRT*)
Capital Gain
Original Rental Property Purchase Price
No Capital Gains Taxes
$1,250,00
($250,000)($250,000)
($0)
$1,000,000
$1,000,000
Scenario BScenario A
OUR TEAM AT THE AMERICAN SOCIETY FOR ASSET PROTECTION ARE EXPERTS IN THE ASSET PROTECTION ARENA.
*Reserached by SBA
Business owners typically pay
per case in legal costs.
$3,000 $150,000
TO
We are a reputable company that works to educate business owners on how best to keep their assets safe. We pride ourselves in teaching professionals how to structure
their assets for lawsuit protection and prevention.
HOW ASSET PROTECTION HELPS INDIVIDUALSAND BUSINESSES PROTECT WEALTH
Example
50%
REMEMBER
LLC tax
COMPANY