The Opposite of Asset Protection
In previous posts regarding strategic default, we discussed the concept of speculation. Here's why mortgage insurance, or MMIF, failed to be enough: While real estate became the subject of speculation by individuals, mortgages became the subject of the speculation by banks. That's right, banks began speculating. Rather than providing a…
Fraudulent Conversions
A fraudulent conversion is a transfer of assets from an unprotected state into a state of being an exempt asset. Assets in an unprotected state can be attacked by creditors. Exempt assets cannot be attacked by creditors. While legal title to assets does not change when a fraudulent conversion occurs,…
Asset Protection and College Planning
A 529 savings plan is an account intended to help families save for the cost of college tuition. Such plans can be operated by states or educational institutions, and all 50 states offer at least one type of 529 plan to help parents (or other relatives) set aside funds for…
Fraudulent Conveyances In Simple Terms
We spend a lot of time thinking about and writing about fraudulent conveyances here at Lodmell & Lodmell. That's because a fraudulent conveyance can totally defeat an asset protection plan, no matter how good your asset protection attorney may be. Laws regarding fraudulent conveyances make certain types of transfers wrongful. …
Strategic Default is Sometimes the Moral Choice
In the last two articles on this series regarding strategic default, we discussed the financial considerations and consequences of actively choosing to let a mortgage go into foreclosure, and we discussed the general conditions leading up to our current situation. This article is a continuation of the second article, Strategic…
Strategic Default: When Foreclosure Makes Sense For You
Foreclosure. When you think about it terms of yourself, it sounds really bad, doesn't it? For some it even feels morally wrong. Let's face it, you undertook an obligation. We live in a society where we have been conditioned to fulfill our obligations at all costs, and let this be…
Strategic Default: How We Got Here
In Part I of this series on Strategic Default, we discussed financial circumstances that make mortgage foreclosure the best option for people who owe more on real estate than the real estate is worth--people who are "underwater" on their mortgages. As was discussed, the choice to walk away from such…
Best Asset Protection Articles of 2010
FLP vs. LLC -- What's the Difference?: This is an excellent description of the basic functions of two very distinct types of business organizations, both of which serve unique purposes in the world of asset protection. Both family limited partnerships and limited liability companies have important functions in terms of…