Estate Planning, Business, Real Estate, & Tax Law Blog

Via this blog we address fundamental concepts and issues relevant to estate planning law, business law, real estate law, & tax law.

Arizona LLC Operating Agreements September 2, 2010 An LLC operating agreement is the limited liability company’s counterpart of a corporation’s bylaws or a partnership’s partnership agreement. Without an operating agreement, the default provisions in the Arizona Limited Liability Company Act will govern the relationships and interests within the LLC on many issues, but four are of particular note: profits/losses & distributions, management, voting, and membership changes. More» Asset Protection August 26, 2010 Asset protection is achieved by arranging one’s assets to preserve maximum value for the owner and family, etc. in the event of creditor problems. It is not a single device that can be simply employed or elected. Instead, it involves the coordinated use of multiple legal disciplines, planning techniques and tools tailored to the assets and circumstances of the individual.  Asset protection planning begins with exercising care at the time debt is incurred or becoming involved in activities that pose financial risk. The provisions of loan documents should be carefully scrutinized to be sure that exposure in event of default is minimized.  Risk arising from activities, rather than from loans, should be insured where possible. More» Understanding Social Security Retirement Benefits August 20, 2010 Because tax/estate planning and Social Security retirement benefits are generally considered closely related, it is helpful for a person to understand these benefits when making decisions about his/her tax and estate plans. The calculations involved in determining the amount of Social Security retirement benefits to which a person is entitled can be complex. However, there are three concepts that can make these calculations easier to understand: (1) early retirement, (2) late retirement, and (2) spousal benefits. Early RetirementElecting to receive Social Security retirement benefits early can substantially decrease the monthly payment to which a person is entitled. More» Foreclosure, Deeds in Lieu, Short Sales, and Taxes August 17, 2010 When the owner of real estate defaults on a real estate loan and the lender asserts its rights in the collateral (the real estate) by suit to foreclose or trustee’s sale, or where the debtor proposes to convey the property to the lender by deed in lieu of foreclosure or to sell the property in a short sale for less than is owed, the consummation of any of these transactions can have significant income tax consequences for the owner/debtor.  The nature and severity of these consequences depends in part on whether the loan is a “recourse” loan or a “non-recourse” loan. More» Special Needs Trusts August 12, 2010 When planning your estate, how do you provide for the needs of a disabled loved one without precluding him/her from eligibility for public benefit programs like Medicaid or Supplemental Security Income? In many cases, this can be accomplished either during your lifetime or at your death through a special needs trust. A special needs trust can provide education, travel, furniture, furnishings, and even pay some utilities for the trust beneficiary, the person for whom the trust was created. However, a special needs trust may not provide food or housing for the beneficiary, but there are a number of complicated exceptions that can allow housing payments in certain circumstances. More»