1 year, 6 months ago triplefrogadminKeymaster
What is the difference between Asset Protection and Exemption Law
In the world of Asset Protection the topic of exemption law rarely comes up and we really feel that is a huge mistake. California has given its citizens a major planning tool that is rarely used and it comes in the form of a Private Retirement Plan using California state law – statute CCP 704.115. Most asset protection strategies usually fall into the category of “hiding assets” meaning moving them to another state, or another country and hiding them behind corporate veils or offshore trust, sounds complicated? Here in California, the strategy used to be to move the assets to Nevada where you would get much better asset protection and tax treatment. Unfortunately that strategy is slowly going the way of the DoDo Bird as the Californian government entities and judges that oversea those rules have gotten more aggressive.
Bankruptcy Attorney understand exemption law and you can look in the above CA civil code to see what the exemptions are. They usually change every year. Wouldn’t it be easier to just exempt your assets using your retirement plan?
Off Shore Planning… Its Expensive
Moving your assets offshore used be a viable strategy and still can be under some circumstances. This best circumstance for offshore planning is if you are planning to move outside the United States, this strategy make a lot of sense but does have its own pitfalls, such as where will I live, can I trust the banks or Government, how easy is to move my money etc..
So what if I want to stay in California? What are my Options?
If you want to stay in California and live and work, then you need to know about a California Private Retirement Trusts. Using the power of the California civil code your assets that can be protected as long as they can be proven to be necessary for your future use aka. retirement. Now to be clear, your entire estate can most likely not be fully protected, but an analysis can be done to see what your exposure is and how it can be mitigated.
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