Our post-modern electric kool-aid acid world has swept most rituals into the compost pile. Even defining ritual is a struggle.
from Wikipedia:
“The purposes of rituals are varied; they include compliance with religious obligations or ideals, satisfaction of spiritual or emotional needs of the practitioners, strengthening of social bonds, demonstration of respect or submission, stating one's affiliation, obtaining social acceptance or approval for some event — or, sometimes, just for the pleasure of the ritual itself.”
Dictionary.com has a number of definitions, including:
“any practice or pattern of behavior regularly performed in a set manner ”
I like to go a little more specific. I think of a ritual as a habit with an attitude, or a deliberate habit with a purpose.
Bad habits are easy to develop. Bad rituals are not. The secret is in the word “deliberate”.
I place the five rituals into the physical realm of what I refer to as critical activities. In each major area of one's life – mental, physical, emotional, spiritual, financial, vocational, social – an individual can identify certain activities which are critical to success. Critical activities vary from person to person.
For example, if one is type II diabetic, a critical activity in the physical plane might be not consuming any processed foods containing sugar or flour. For other individuals, a trip to the donut shop is a treat, not an invitation to a sugar coma.
I work each day to turn what I perceive as my critical activities into rituals. The five Tibetan rituals make that job easier.
I started a new job recently with an online university where most of my co-workers are half my age. When I saw the ID badge they gave me, I wondered who the old man was in the photo. (Inside every old man is a young stud wondering what happened.)
We work 10 hour days in an intense environment. Without the lift I receive from performing the Five Rituals before work, I would not have the energy to keep up with the kids. Red Bull is not enough.
Proponents of the Five Rituals claim the following benefits:
-look younger
-feel younger
-increased energy
-live longer
-reduced stress
-increased vitality
-increased virility
-sense of well-being
-spiritual enlightenment
-balanced life
-unlock the potential of the brain
-positive outlook on life
-slow the aging process
-increased productivity
-boost in self-esteem
-heightened immune system
-less fatigue
-positive emotions
-less depression
Let's face it. The promises are just about everything except the location of Jimmy Hoffa's remains. I'm a skeptic. I don't need everything on the list. If I have more energy, look a bit younger than that ID photo, and a touch more virility, the rest of the items in the list will take care of themselves.
Caveats:
1.Start with 7 reps of each ritual instead of 3. If you are basically healthy, 3 reps just seems to be too little. Max for each ritual is 21.
2.Ritual 6 is one you will want to add.
3.Ritual 7 is one most will avoid, especially if your virility has increased, if you get my drift.
If you find, as I do, that the Five Rituals are critical to your physical and mental well-being, you will find 10 minutes each morning to start your day right.
Sunday, May 18, 2008
Wednesday, March 26, 2008
Identity Theft
After Hurricane Wilma struck Ft. Lauderdale in 2005, the entire county went offline. No power, no computer. No computer, no Internet. You couldn't buy gas because the electric pumps were out. You could only buy what groceries were still on the shelf if you had cash. Credit and debit cards were rendered useless.
Things always go wrong at the worst possible time.
At the worst possible moment, hackers struck my PayPal account, overdrew my connected bank account and credit card, and left me penniless when I was most vulnerable.
As more and more crooks and cons become Internet savvy, identity theft is now the fastest growing crime in the U.S.
Identity theft falls into 4 categories:
-financial (stealing goods and services)
-criminal (fake identity when arrested)
-cloning (pretending to be someone else)
-business (using another's business to obtain credit)
We mostly think of identity theft when a stranger uses our credit to obtain goods and services, but the others can be even more devastating. Try applying for a job after someone gave your identity when they were convicted and jailed for a felony.
Identity Theft Prevention:
1.don't be free and easy with your Social Security number
2.don't print your SSN on checks
3.don't carry blank checks or credit cards you don't need – you may not miss them when they have been stolen
4.be especially careful about giving your SSN over the phone or online
5.don't throw away official government letters or credit card statements without shredding
6.secure your mail with a locking mailbox if necessary
7.sign new credit cards as soon as you receive them
8.do not leave credit card receipts behind at restaurants, gas stations, or stores
9.choose tough-to-figure-out logins, passwords, and PIN numbers
10.use different passwords for different accounts
11.change your PIN numbers and passwords every 90 days
12. do not carry your PIN numbers in your wallet or purse
13. change the passwords often for services like PayPal which are linked to your bank account and credit cards
14. put your phone numbers on the national Do-Not-Call Registry (1-888-382-1222 )
15. don't give your phone number to those who don't need it (stores – pay attention)
16. do a Google search for your own name and SSN to see what you can find out about yourself
17. choose online vendors carefully – Google before purchasing with a credit card – look for a secure site button
18. keep an eye out for shoulder surfers in public transactions
19. be wary of skimmers wherever your credit card is out of your sight (restaurants)
20. be careful with file sharing software – it can give hackers access to your computer
21. limit the amount of personal info you divulge on social networking sites
22. keep a close eye on laptops and thumb drives that contain personal information
23. review your monthly bank and credit card statements carefully, or check more often online
24. review your credit report at least once a year for suspicious activity or inquiries
25. keep a master record in a safe place with account numbers and phone numbers should your credit cards be stolen
Identity Theft Recovery:
If your personal data has been subject to identify theft, act immediately.
1.if your cards or ID were physically stolen, file a police report
2.call the big 3 credit bureaus, place a fraud alert on your credit cards, and obtain a free credit report
3.close any bank accounts and credit cards you believe have been used by identity thieves
4.dispute any charges or checks or withdrawals you have not authorized
5.contact DMV for a new drivers' license and number if yours has been compromised
6.ask for a letter from each account resolving the dispute and verifying that the identity theft accounts have been closed
U.S. Government statistics estimate it takes about 600 hours and $1,200 to counter identity theft and restore your good name and credit.
Prevention beats cure every time.
===
Charles Lamm is dedicated to asset protection for the masses using his Asset Protection Iron Triangle program at http://www.corp-llc-bct.com . More information on prevention of and recovery from Identity Theft can be found at: http://corp-llc-bct.com/identity-theft/ .
Things always go wrong at the worst possible time.
At the worst possible moment, hackers struck my PayPal account, overdrew my connected bank account and credit card, and left me penniless when I was most vulnerable.
As more and more crooks and cons become Internet savvy, identity theft is now the fastest growing crime in the U.S.
Identity theft falls into 4 categories:
-financial (stealing goods and services)
-criminal (fake identity when arrested)
-cloning (pretending to be someone else)
-business (using another's business to obtain credit)
We mostly think of identity theft when a stranger uses our credit to obtain goods and services, but the others can be even more devastating. Try applying for a job after someone gave your identity when they were convicted and jailed for a felony.
Identity Theft Prevention:
1.don't be free and easy with your Social Security number
2.don't print your SSN on checks
3.don't carry blank checks or credit cards you don't need – you may not miss them when they have been stolen
4.be especially careful about giving your SSN over the phone or online
5.don't throw away official government letters or credit card statements without shredding
6.secure your mail with a locking mailbox if necessary
7.sign new credit cards as soon as you receive them
8.do not leave credit card receipts behind at restaurants, gas stations, or stores
9.choose tough-to-figure-out logins, passwords, and PIN numbers
10.use different passwords for different accounts
11.change your PIN numbers and passwords every 90 days
12. do not carry your PIN numbers in your wallet or purse
13. change the passwords often for services like PayPal which are linked to your bank account and credit cards
14. put your phone numbers on the national Do-Not-Call Registry (1-888-382-1222 )
15. don't give your phone number to those who don't need it (stores – pay attention)
16. do a Google search for your own name and SSN to see what you can find out about yourself
17. choose online vendors carefully – Google before purchasing with a credit card – look for a secure site button
18. keep an eye out for shoulder surfers in public transactions
19. be wary of skimmers wherever your credit card is out of your sight (restaurants)
20. be careful with file sharing software – it can give hackers access to your computer
21. limit the amount of personal info you divulge on social networking sites
22. keep a close eye on laptops and thumb drives that contain personal information
23. review your monthly bank and credit card statements carefully, or check more often online
24. review your credit report at least once a year for suspicious activity or inquiries
25. keep a master record in a safe place with account numbers and phone numbers should your credit cards be stolen
Identity Theft Recovery:
If your personal data has been subject to identify theft, act immediately.
1.if your cards or ID were physically stolen, file a police report
2.call the big 3 credit bureaus, place a fraud alert on your credit cards, and obtain a free credit report
3.close any bank accounts and credit cards you believe have been used by identity thieves
4.dispute any charges or checks or withdrawals you have not authorized
5.contact DMV for a new drivers' license and number if yours has been compromised
6.ask for a letter from each account resolving the dispute and verifying that the identity theft accounts have been closed
U.S. Government statistics estimate it takes about 600 hours and $1,200 to counter identity theft and restore your good name and credit.
Prevention beats cure every time.
===
Charles Lamm is dedicated to asset protection for the masses using his Asset Protection Iron Triangle program at http://www.corp-llc-bct.com . More information on prevention of and recovery from Identity Theft can be found at: http://corp-llc-bct.com/identity-theft/ .
Tuesday, February 19, 2008
Slip Knots - Alternatives to Marriage
You don't have to be gay to understand the frustration committed same-sex partners have with not being able to be recognized as a legal couple through marriage.
As the saying goes, be careful what you wish for. You might get it.
First, in legal terms, marriage is an unconscionable contract. Over 50% now end in divorce. The split up rate for gay and lesbian partners is even higher. If less than half work out, why do we need marriage at all?
The marriage contract is a three-party contract - husband, wife, and state. The state holds all the cards. The state determines who can and cannot marry, and decides if and under what terms the marriage can be dissolved.
What I suggest for couples or groups who cannot legally marry is to construct their own relationships using LLCs to define those relationships according to their own desires. An LLC cannot be set up to circumvent state laws or to legitimize an illegal sexual arrangement, but many other aspects of traditional marriage such as joint ownership of property and health insurance can be addressed quite nicely by the LLC.
For example, if the LLC provides health coverage for the members, and the relationship breaks up, the LLC will continue to insure the individual members. When a divorce takes place, if the insurance was in one spouse's name at work, the ex-spouse will likely lose his or her insurance.
Joint property via an LLC is an even better proposition. Membership can be apportioned according to the contributions each made to the LLC. If the relationship dissolves, you still retain your ownership percentage through the LLC instead of having a family court judge divide the property according to how the court wants to apportion it.
An LLC lets you control the "divorce", and works better than a prenuptial or post nuptial agreement, which can be modified or ignored by the court.
Prenuptial agreements are flawed in regard to children. For traditional couples, a prenuptial cannot contract away the rights of the unborn. The one thing all states will do is bend the divorce decree to favor the payment of child support, no matter what the financial situation of the parents. The state, quite simply, does not want to pick up the welfare tab for your failed marriage.
An LLC can include children as members. Children can have their own say in family/LLC affairs. Assets such as the family home can remain in the LLC and survive the breakup of the marriage.
And finally, husbands and wives destroy each other's credit all the time. Members in an LLC are treated like partners for tax purposes, and their percentages of the profits pass through to their individual tax returns, while members retain the limited liability protection of a corporation.
Members of the LLC are not individually liable for the debts of the LLC, and they are not liable for the debts of other members. One LLC member cannot ruin the credit of another, as husband and wife can.
For gay and lesbian couples, plural "marriages", and other unconventional relationships, keep the state out of your affairs with an LLC. Instead of tying the knot, use a slip knot to have the relationship you desire, plus the ability to change that relationship without the permission of the nanny state.
===
Charles Lamm is a retired attorney who owns Trustee and RA Services Inc. in Coral Springs, Florida. He recommends asset protection for all using a no-asset corporation, LLC, and beneficiary controlled trust. Read more at: http://www.corp-llc-bct.com.
As the saying goes, be careful what you wish for. You might get it.
First, in legal terms, marriage is an unconscionable contract. Over 50% now end in divorce. The split up rate for gay and lesbian partners is even higher. If less than half work out, why do we need marriage at all?
The marriage contract is a three-party contract - husband, wife, and state. The state holds all the cards. The state determines who can and cannot marry, and decides if and under what terms the marriage can be dissolved.
What I suggest for couples or groups who cannot legally marry is to construct their own relationships using LLCs to define those relationships according to their own desires. An LLC cannot be set up to circumvent state laws or to legitimize an illegal sexual arrangement, but many other aspects of traditional marriage such as joint ownership of property and health insurance can be addressed quite nicely by the LLC.
For example, if the LLC provides health coverage for the members, and the relationship breaks up, the LLC will continue to insure the individual members. When a divorce takes place, if the insurance was in one spouse's name at work, the ex-spouse will likely lose his or her insurance.
Joint property via an LLC is an even better proposition. Membership can be apportioned according to the contributions each made to the LLC. If the relationship dissolves, you still retain your ownership percentage through the LLC instead of having a family court judge divide the property according to how the court wants to apportion it.
An LLC lets you control the "divorce", and works better than a prenuptial or post nuptial agreement, which can be modified or ignored by the court.
Prenuptial agreements are flawed in regard to children. For traditional couples, a prenuptial cannot contract away the rights of the unborn. The one thing all states will do is bend the divorce decree to favor the payment of child support, no matter what the financial situation of the parents. The state, quite simply, does not want to pick up the welfare tab for your failed marriage.
An LLC can include children as members. Children can have their own say in family/LLC affairs. Assets such as the family home can remain in the LLC and survive the breakup of the marriage.
And finally, husbands and wives destroy each other's credit all the time. Members in an LLC are treated like partners for tax purposes, and their percentages of the profits pass through to their individual tax returns, while members retain the limited liability protection of a corporation.
Members of the LLC are not individually liable for the debts of the LLC, and they are not liable for the debts of other members. One LLC member cannot ruin the credit of another, as husband and wife can.
For gay and lesbian couples, plural "marriages", and other unconventional relationships, keep the state out of your affairs with an LLC. Instead of tying the knot, use a slip knot to have the relationship you desire, plus the ability to change that relationship without the permission of the nanny state.
===
Charles Lamm is a retired attorney who owns Trustee and RA Services Inc. in Coral Springs, Florida. He recommends asset protection for all using a no-asset corporation, LLC, and beneficiary controlled trust. Read more at: http://www.corp-llc-bct.com.
Monday, February 18, 2008
Asset Protection From the Trust Up
Asset protection against the causes of wealth depletion - lawsuits, judgments, creditors, ex-spouses, financial mismanagement, and the IRS - can be avoided or eliminated by the use of a Beneficiary Controlled Trust, created by someone else as Grantor and you as the Beneficiary/Investment Trustee. A spendthrift provision and a second Distribution Trustee shields your assets from predators.
-----------
Asset protection works best when you start before you have a significant number of assets that need protection. You need to fix the roof before the rains pour in. The earlier a trust is created, the greater the benefits.
The time you usually worry about your assets - when facing a divorce, lawsuit, creditor demands, or a tax lien - is when you can kiss your stuff goodbye. If you have not protected it by then, it's not your property. It belongs to whoever the judge says it does.
Trusts used to be the last thing a middle-class taxpayer had to worry about. Estate taxes were the problem of the rich. A trust, along with appropriate use of corporations and limited liability companies, means never having to give your property to the ex-anyone again.
As it stands now, with modest homes in many parts of the U.S. fetching over $1 million, trusts are the most powerful asset preservation device available. In addition, all gifts and bequests should be made and kept in trust instead of being given outright.
What we call a BCT (Beneficiary Controlled Trust) goes by a more accurate description of "Crummey Defective Grantor Spendthrift Trust".
Crummey is the name of an individual who challenged the IRS and won, not a depiction of the quality of the trust. For that alone he deserves your respect and admiration.
In our Beneficiary Controlled Trust, the beneficiary also serves as trustee, hence the control. Crummey powers are handled by the second trustee, known as the Distribution Trustee, but all control and decisions remain with the beneficiary/trustee.
The BCT is designed to:
1. Give the beneficiary beneficial use and control of trust property without having ownership which can be reached by creditors or distributed by a judge in a divorce case. You can't lose property in a divorce settlement if you don't own it.
2. Have no negative gift or estate tax for the beneficiary or the person creating the trust (Grantor).
3. Own businesses in the form of corporations or LLCs to provide protection from personal liability from debts of or judgments against the business entities.
4. Pass income earned by the trust to the beneficiary to be taxed at lower individual tax rates.
5. Provide a way for parents to use their annual gift tax exemption to transfer wealth to children or grandchildren without estate tax issues for either the grantors or beneficiaries.
6. Restrict income and principal distributions only for HEMS (health, education, support, and maintenance). Distributions are discretionary, not mandated. HEMS conforms with IRS standards to make sure the assets are not included in your estate, and cannot be reached by creditors.
7. Gives you the right to replace the Distribution Trustee (2nd trustee) at any time. While this might not seem important at first, this is one of the few irrevocable trusts that can be "rewritten". The trust can continue for the beneficiary's lifetime and for successive generations. The only caveat is that the beneficiary/trustee may not rewrite in such a way as to increase his own benefits.
8. Our BCT has special testamentary powers of appointment which allows you to direct who receives the trust property upon your death. To prevent assets from becoming a part of your estate, the BCT will prohibit you from giving any property to creditors, your estate, or estate creditors. You can now pass the trust assets on to your family or charities or anyone you choose.
9. For parents who want to help their children start a new business, funds given outright to the individual child are exposed to claims of creditors or ex-spouses. Seed money contributions to the trust can be used to form a corporation or to organize a new limited liability company. An LLC owned 98% by the BCT, and 1% owned each by two natural persons such as the parents, is the structure we have found to provide superior asset protection. The LLC can then acquire assets 98% owned by the trust.
10. The beneficiary has no enforceable right to demand income or principal from the trust, so creditors cannot step into the shoes of the beneficiary and force a distribution. In bankruptcy, the beneficiary cannot voluntarily or involuntarily assign his interest in the trust for the benefit of creditors.
If you have full ownership of property, creditors, spouses, and the IRS can come gunning for you. Failure to exploit trusts to their maximum advantage puts a bull's-eye on your chest.
When distributions are subject to the absolute discretion of the independent Distribution Trustee, even though the beneficiary can replace that independent trustee, you now have unequalable divorce and creditor protection.
-----------
beneficiary controlled trust,spendthrift clause,trustee,beneficiary,asset protection,assets,IRS,taxes,taxation,creditors,divorce,property settlement,tax lien,trust,
-----------
Charles Lamm is a retired attorney and owner of Trustee and RA Services, Inc., in Coral Springs, Florida. His asset protection articles appear on his blog at: http://www.corp-llc-bct.com. To learn more about how to combine a corporation, LLC, and Beneficiary Controlled Trust for maximum asset protection and tax benefits, please email him at: asset-protection@corp-llc-bct.com.
-----------
Asset protection works best when you start before you have a significant number of assets that need protection. You need to fix the roof before the rains pour in. The earlier a trust is created, the greater the benefits.
The time you usually worry about your assets - when facing a divorce, lawsuit, creditor demands, or a tax lien - is when you can kiss your stuff goodbye. If you have not protected it by then, it's not your property. It belongs to whoever the judge says it does.
Trusts used to be the last thing a middle-class taxpayer had to worry about. Estate taxes were the problem of the rich. A trust, along with appropriate use of corporations and limited liability companies, means never having to give your property to the ex-anyone again.
As it stands now, with modest homes in many parts of the U.S. fetching over $1 million, trusts are the most powerful asset preservation device available. In addition, all gifts and bequests should be made and kept in trust instead of being given outright.
What we call a BCT (Beneficiary Controlled Trust) goes by a more accurate description of "Crummey Defective Grantor Spendthrift Trust".
Crummey is the name of an individual who challenged the IRS and won, not a depiction of the quality of the trust. For that alone he deserves your respect and admiration.
In our Beneficiary Controlled Trust, the beneficiary also serves as trustee, hence the control. Crummey powers are handled by the second trustee, known as the Distribution Trustee, but all control and decisions remain with the beneficiary/trustee.
The BCT is designed to:
1. Give the beneficiary beneficial use and control of trust property without having ownership which can be reached by creditors or distributed by a judge in a divorce case. You can't lose property in a divorce settlement if you don't own it.
2. Have no negative gift or estate tax for the beneficiary or the person creating the trust (Grantor).
3. Own businesses in the form of corporations or LLCs to provide protection from personal liability from debts of or judgments against the business entities.
4. Pass income earned by the trust to the beneficiary to be taxed at lower individual tax rates.
5. Provide a way for parents to use their annual gift tax exemption to transfer wealth to children or grandchildren without estate tax issues for either the grantors or beneficiaries.
6. Restrict income and principal distributions only for HEMS (health, education, support, and maintenance). Distributions are discretionary, not mandated. HEMS conforms with IRS standards to make sure the assets are not included in your estate, and cannot be reached by creditors.
7. Gives you the right to replace the Distribution Trustee (2nd trustee) at any time. While this might not seem important at first, this is one of the few irrevocable trusts that can be "rewritten". The trust can continue for the beneficiary's lifetime and for successive generations. The only caveat is that the beneficiary/trustee may not rewrite in such a way as to increase his own benefits.
8. Our BCT has special testamentary powers of appointment which allows you to direct who receives the trust property upon your death. To prevent assets from becoming a part of your estate, the BCT will prohibit you from giving any property to creditors, your estate, or estate creditors. You can now pass the trust assets on to your family or charities or anyone you choose.
9. For parents who want to help their children start a new business, funds given outright to the individual child are exposed to claims of creditors or ex-spouses. Seed money contributions to the trust can be used to form a corporation or to organize a new limited liability company. An LLC owned 98% by the BCT, and 1% owned each by two natural persons such as the parents, is the structure we have found to provide superior asset protection. The LLC can then acquire assets 98% owned by the trust.
10. The beneficiary has no enforceable right to demand income or principal from the trust, so creditors cannot step into the shoes of the beneficiary and force a distribution. In bankruptcy, the beneficiary cannot voluntarily or involuntarily assign his interest in the trust for the benefit of creditors.
If you have full ownership of property, creditors, spouses, and the IRS can come gunning for you. Failure to exploit trusts to their maximum advantage puts a bull's-eye on your chest.
When distributions are subject to the absolute discretion of the independent Distribution Trustee, even though the beneficiary can replace that independent trustee, you now have unequalable divorce and creditor protection.
-----------
beneficiary controlled trust,spendthrift clause,trustee,beneficiary,asset protection,assets,IRS,taxes,taxation,creditors,divorce,property settlement,tax lien,trust,
-----------
Charles Lamm is a retired attorney and owner of Trustee and RA Services, Inc., in Coral Springs, Florida. His asset protection articles appear on his blog at: http://www.corp-llc-bct.com. To learn more about how to combine a corporation, LLC, and Beneficiary Controlled Trust for maximum asset protection and tax benefits, please email him at: asset-protection@corp-llc-bct.com.
Tuesday, February 5, 2008
Turnip From God
"PARKSLEY -- While picking vegetables from a friend's garden last Saturday, Accomack County resident Eunice Warrington unearthed a natural wonder that she believes was a "sign from God."
Amid the falling snow last weekend, Warrington picked a massive turnip -- nearly as large as her head.
"I thought to myself, 'I've never seen a turnip that big,'" said Warrington of the bulky root vegetable. "I couldn't believe my eyes. There were hundreds of little turnips all around and this one was growing next to them." "
- http://www.delmarvanow.com/apps/pbcs.dll/article?AID=/20080131/CB01/801310341/1052/CB
A sign from God. A turnip?
Can't we just have God turn all politicians into pillars of shit?
That would be an Act of God.
===
Charles Lamm is a retired attorney who owns Trustee and RA Services, Inc., in Coral Springs, Florida. His asset protection blog can be found at http://www.corp-llc-bct.com.
Amid the falling snow last weekend, Warrington picked a massive turnip -- nearly as large as her head.
"I thought to myself, 'I've never seen a turnip that big,'" said Warrington of the bulky root vegetable. "I couldn't believe my eyes. There were hundreds of little turnips all around and this one was growing next to them." "
- http://www.delmarvanow.com/apps/pbcs.dll/article?AID=/20080131/CB01/801310341/1052/CB
A sign from God. A turnip?
Can't we just have God turn all politicians into pillars of shit?
That would be an Act of God.
===
Charles Lamm is a retired attorney who owns Trustee and RA Services, Inc., in Coral Springs, Florida. His asset protection blog can be found at http://www.corp-llc-bct.com.
Sunday, February 3, 2008
Asset Protection Iron Triangle
Asset protection is not just for the wealthy any longer. When a middle class home can easily run a half million dollars in Florida, and over a million in New York or California, anyone can become a target of lawsuits, divorce courts, and the IRS.
You have to dig a well before you are thirsty, or in this case, build a legal fortress before invading barbarians reach your gate.
Your tools to protect your assets are:
* no asset C Corporation
* limited liability company (LLC)
* beneficiary controlled trust
C-Corp:
A "no asset" C corporation will be the management company for your LLC. The two work together to protect your property from those who would take it from you.
You are employed by the C Corp, not the LLC. You can also be the sole shareholder and hold all of the officer positions. Your corporation owns nothing but a checkbook.
Your corporation can pay for:
- medical insurance for the officers
- life insurance ($50 thousand limit)
- retirement plan
As an officer, you can be reimbursed for out-of-pocket medical expenses through a medical expense reinbursement plan (MERP).
Entertainment expenses directly related to the business can include:
- training expenses
- travel
- meals
- computer expenses
- phone expenses
- business gifts up to $25 per recipient
Never let your corporation pay for personal items. Commingling of funds could pierce the corporate veil and make you personally liable for corporate debts in the event of a judgment against the corporation.
This is just a partial list of deductions for your corporation. Consult your CPA or tax advisor for the latest changes in allowable deductions.
LLC:
Your limited liability company is where you earn your income. Your LLC should also own any vehicles, equipment, computers, copiers, printers, and real property.
You want your Operating Agreement to make your corporation the Manager of your LLC.
Your LLC should also pay the bulk of your operating expenses for your office, supplies, travel, fuel, utilities, phone, computers, and more.
Your interest in the LLC will be as a 99% member will be owned by the trust.
Beneficiary Controlled Trust:
A beneficiary controlled trust is the crown jewel of asset protection.
While I will not go into detail here, a BCT works like this:
Someone other than yourself establishes an irrevocable trust with you as the beneficiary and as the Investment Trustee. A second entity or person is required as the Distribution Trustee.
My company, Trustee and RA Services, Inc., can act as your Distribution Trustee if you want to keep your affairs private from your friends and relatives.
We are located in Coral Springs, Florida, and we usually situs the BCT in Florida to take advantage of Florida's excellent trust laws, as well as no state income tax.
The Grantor can put up to $12,000 per year into the trust without gift tax considerations, and you have an immediate right to withdraw the money as it is a Crummey defective grantor trust.
It's complicated, but the idea is to leave the assets in the trust and use the trust to own the LLC and to take care of your needs.
The trust can purchase property, pay for your education and medical expenses, and take care of your physical well-being. You have full control over the trust assets without actually owning anything.
As the Investment Trustee, you control how the assets are used, and you can replace the Distribution Trustee at any time.
We often refer to this as the CakeTrust, as in "have your cake and eat it too".
Summary:
You are now isolated from lawsuits, creditors, judgments, ex-spouses, and the IRS.
===
Charles Lamm is a retired attorney who owns Trustee and RA Services, Inc., in Coral Springs, Florida. His asset protection blog can be found at http://www.corp-llc-bct.com. You can also reach him by email at asset-protection@corp-llc-bct.com.
You have to dig a well before you are thirsty, or in this case, build a legal fortress before invading barbarians reach your gate.
Your tools to protect your assets are:
* no asset C Corporation
* limited liability company (LLC)
* beneficiary controlled trust
C-Corp:
A "no asset" C corporation will be the management company for your LLC. The two work together to protect your property from those who would take it from you.
You are employed by the C Corp, not the LLC. You can also be the sole shareholder and hold all of the officer positions. Your corporation owns nothing but a checkbook.
Your corporation can pay for:
- medical insurance for the officers
- life insurance ($50 thousand limit)
- retirement plan
As an officer, you can be reimbursed for out-of-pocket medical expenses through a medical expense reinbursement plan (MERP).
Entertainment expenses directly related to the business can include:
- training expenses
- travel
- meals
- computer expenses
- phone expenses
- business gifts up to $25 per recipient
Never let your corporation pay for personal items. Commingling of funds could pierce the corporate veil and make you personally liable for corporate debts in the event of a judgment against the corporation.
This is just a partial list of deductions for your corporation. Consult your CPA or tax advisor for the latest changes in allowable deductions.
LLC:
Your limited liability company is where you earn your income. Your LLC should also own any vehicles, equipment, computers, copiers, printers, and real property.
You want your Operating Agreement to make your corporation the Manager of your LLC.
Your LLC should also pay the bulk of your operating expenses for your office, supplies, travel, fuel, utilities, phone, computers, and more.
Your interest in the LLC will be as a 99% member will be owned by the trust.
Beneficiary Controlled Trust:
A beneficiary controlled trust is the crown jewel of asset protection.
While I will not go into detail here, a BCT works like this:
Someone other than yourself establishes an irrevocable trust with you as the beneficiary and as the Investment Trustee. A second entity or person is required as the Distribution Trustee.
My company, Trustee and RA Services, Inc., can act as your Distribution Trustee if you want to keep your affairs private from your friends and relatives.
We are located in Coral Springs, Florida, and we usually situs the BCT in Florida to take advantage of Florida's excellent trust laws, as well as no state income tax.
The Grantor can put up to $12,000 per year into the trust without gift tax considerations, and you have an immediate right to withdraw the money as it is a Crummey defective grantor trust.
It's complicated, but the idea is to leave the assets in the trust and use the trust to own the LLC and to take care of your needs.
The trust can purchase property, pay for your education and medical expenses, and take care of your physical well-being. You have full control over the trust assets without actually owning anything.
As the Investment Trustee, you control how the assets are used, and you can replace the Distribution Trustee at any time.
We often refer to this as the CakeTrust, as in "have your cake and eat it too".
Summary:
You are now isolated from lawsuits, creditors, judgments, ex-spouses, and the IRS.
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Charles Lamm is a retired attorney who owns Trustee and RA Services, Inc., in Coral Springs, Florida. His asset protection blog can be found at http://www.corp-llc-bct.com. You can also reach him by email at asset-protection@corp-llc-bct.com.
Monday, January 28, 2008
Coming Amnesty
Now is the time for all illegal aliens, undocumented workers, and Mexicans repatriating the motherland, to get prepared.
No matter what venom is spewed by the current Presidential candidates, there will be an amnesty. I don't know when, but it will happen. Count on it.
If you can pay your taxes, pay them. You can bet the powers that be will attempt to extract a steep price for citizenship, and paying back taxes will be a part of it.
No matter what venom is spewed by the current Presidential candidates, there will be an amnesty. I don't know when, but it will happen. Count on it.
If you can pay your taxes, pay them. You can bet the powers that be will attempt to extract a steep price for citizenship, and paying back taxes will be a part of it.
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