Case Study One

Bill and Mary: Protected Their Assets From Lawsuits or Attachment

At the end of the day, Bill and Mary wanted to use secure and proven asset protection strategies to enhance their comprehensive estate plan. Protecting their legacy while having access to their resources was of critical importance to the couple.

Bill and Mary have been married over 35 years and have raised 3 children, all of whom are presently married with children.

Bill has owned his own business for many years and has been successful in several outside ventures, including the acquisition of several multi-tenant residential properties. He received an attractive offer to sell his business. He is planning to accept so he can devote more time to his family, to the personal management of his investments, and to his rental properties. He plans to remain on the board of directors of several firms, one of which is a publicly traded company. For many years, Mary has been active in the community and serves on several boards of trustees.

Bill and Mary had a revocable living trust and companion wills, a life insurance trust, and durable powers of attorney for health care and property. Bill was concerned about the potential exposure to liability from the sale of his business, the boards on which he serves, and from the real estate portfolio his living trust owns and which he manages as the trustee.

Bill and Mary were given the following advice from the Jeffrey M. Verdon Law Group in connection with the restructuring of their estate plan. In addition to comprehensive estate planning, we were able to reduce the size of the projected taxable estate by gifting assets from their estate to their children and grandchildren, without the loss of control.

Bill and Mary achieved several important goals:

1. Protected their assets against lawsuits or attachment from whatever source.

2. Reduced their taxable estate with a gift to the HYCET Trust using the available gift exemption, while maintaining the option to have access to the funds if their financial circumstances changed.

3. Maintained management and control of their rental properties and investments.

4. Created a comprehensive estate plan where the assets held in the trust were not subject to the vagaries of the U.S. legal system, including a superior estate planning vehicle to avoid the expense and problems of a challenge to the trust after their deaths.