Asset Protection With New Jersey Business Entities
New Jersey is another state from which many people call with questions about asset protection. Rightly so, because New Jersey does not offer any homestead exemption, which means that anyone with unprotected assets is completely at risk of losing EVERYTHING, including the home in which they live. Not a good…
California Asset Protection
We've been getting a lot of questions about how asset protection laws vary from state to state. One state that people have questions about in particular is California. So let's take a look at how things operate in California in terms of asset protection. You may also be wondering if…
New York Asset Protection Lessons
Some states are more favorable to asset protection than others. One way to tell whether a state is favorable to asset protection is to look at whether it has a charging order statute in place. Some state statutes specify that a charging order is the exclusive remedy available to creditors…
Special versus General Powers of Appointment in Asset Protection Trusts
In a very recent article, we discussed the concept of powers of appointment in asset protection trusts. The use of a power of appointment can be used in domestic and in conjunction with other tools creating offshore asset protection. We did not, however, discuss the different types of powers of…
Self-Settled Trusts Should Protect Assets, But Do They?
A self-settled trust is one where the person creating the trust (the "settlor") is also the beneficiary. It's easy to understand why courts frown on this type of trust for asset protection purposes. In theory, a self-settled trust could simply be used to provide an individual with the beneficial use…
Powers of Appointment In Asset Protection Trusts
Asset protection lawyers spend a lot of time thinking of inventive ways to shield assets. Sometimes, however, the best solution to a problem is simply using an old tool in an new or innovative way. A special power of appointment is one such tool. Lawyers have been using powers of…
Mortgage Insurance Rates
We posted previously on the cause of the rising mortgage foreclosures and strategic default. On February 14, 2011 the Department of Housing and Urban Development ("HUD") showed its love and Valentine's Day spirit by announcing an increase in premiums for mortgage insurance. The .25% increase is apparently a response to…
Types of Fraudulent Conveyances
In an earlier post on fraudulent conveyances, we discussed how a fraudulent conveyance works in very simple terms. This post is a discussion of types of fraudulent conveyances and will discuss three general kinds of transactions that can be overturned by a court and cause a serious problem for wealth…