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Asset Inventory & Protection

Montana Asset Inventory and Protection

Missoula, Montana Asset Inventory and Protection Estate Planning Attorneys

Elder abuse is a general term that refers to a single or repeated act (or lack of appropriate action) that causes harm or distress to an older person. Normally, there is an expectation of trust between the elder and the offender. The elder may rely on the person for care and support but instead receives neglect. Unfortunately, elder abuse is common, and the number of reported cases is probably only a fraction of the actual number of incidences.

It’s hard to understand why anyone would abuse an elderly person, but cases of elder abuse often involve a financial motivation for the abuser. Sometimes the abuser is an insensitive family member, trying to gain what is “rightfully” theirs or trying to prevent the sick relative from using their inheritance.

Other individuals may try to become close to an elderly person by telling them that they love and care for them, with the actual motive of accessing the elderly person’s personal information and money. Business people can also take advantage of the elderly by overcharging or being dishonest with their business practices.

Moreover, the elderly are easier targets for abuse because of their declining health and mental states. They often suffer from ailments such as dementia, which may cause them to lose their memory and subsequently be taken advantage of. They may also feel lonely or unwanted, which may increase the need for attachment, even if it means clinging to an abusive caregiver.

Elder abuse often goes unreported because of mental or physical inabilities as well as embarrassment and shame about the abuse. Whether the abuse is intentional or unintentional, if you suspect elder abuse you may wish to speak to an attorney; it may also be appropriate to report it to Adult Protective Services in your state.

Bulman, Jones & Cook PLLC Asset Protection and Estate Planning

An important goal of Estate Planning is to protect income and assets from creditors’ claims and tax collection. While many people think asset protection involves shady or dishonest techniques, there are many legal ways to protect financial reserves, personal property, real estate and other assets for retirement or for future generations.

In addition to federal and state laws that exempt certain types of property from creditors’ claims, taxation, or both, there are numerous estate planning tools that may be able to shield assets from future creditors and reduce or eliminate estate or income taxation.

If you are interested in working with estate planning attorney Bradley J. Jones to create a plan to protect your assets, contact Bulman Jones & Cook PLLC in Missoula, Montana today to schedule a Free Consultation.

Family Limited Partnerships & Asset Protection

A family limited partnership (FLP) can be one of the most valuable asset protection strategies for a family whose members want to preserve their assets while retaining control over them. FLPs are set up much like traditional limited partnerships with “general partners” (frequently parents) and “limited partners” (usually the children).

General partners manage the partnership’s assets, make investment decisions, share in the FLP’s income and are responsible for the FLP’s debts. Limited partners have an ownership interest in the FLP and share in the income generated by the FLP, but they have little or no control over the FLP’s activities and are responsible for the FLP’s debts only to the extent of their ownership interests.

FLPs are designed to reduce estate and gift taxes by taking advantage of valuation discounts, the annual gift tax exclusion, and the unified credit.

  • Valuation Discounts - Because interests in FLPs are generally not marketable (that is, interests in FLPs cannot be converted easily to cash at a known market price), a discount for lack of marketability (DLOM) is typically appropriate, and a DLOM often significantly reduces an FLP’s value for estate tax purposes. A minority discount may also be available to reduce the valuation of an FLP interest given to a limited partner who has only a non-controlling interest in the FLP.

  • Annual Gift Tax Exclusion and Unified Credit - Under the annual gift tax exclusion, gifts of an individual’s FLP interest up to a certain dollar amount, to different recipients and within the same year are exempt from the federal gift tax. Similarly, under the unified estate-and-gift tax credit (also called the unified credit or applicable exclusion), estates are exempt from the federal transfer tax up to a certain dollar amount.

Because valuation discounts reduce an FLP’s estate and gift tax value, the benefits of the annual gift tax exclusion and the unified credit are greater for assets transferred through the FLP than for assets transferred outside of it.

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Shielding Assets from Creditors

A properly structured FLP or other limited liability entity may also provide protection from creditors; however, there are limitations with respect to the extent of asset protection that this type of planning can provide. These limitations vary by state and by type of entity.

For many years, shifting ownership of assets to a spouse whose risk of liability is less than that of the other was a commonly-employed asset protection technique. Subject to the laws against transfers for the purpose of committing fraud, assets owned by a spouse are not usually available to satisfy a judgment or order against the other spouse.

A creditor that wants to sue a person who has placed his or her assets into a trust, a foundation or other entity may find that there are very few assets actually owned by the person they wish to sue. Assets owned by a trust, foundation or similar entity are generally not subject to claims against its beneficiaries. In addition, placing assets into an asset protection entity can remove those assets from a person’s taxable estate.

Homestead Exemptions

Montana offers generous homestead exemptions which may be an excellent way to protect assets. In order to take advantage of this asset protection, simply contribute extra principal to mortgage payments in order to create more equity in your home. However, it is critical to check your state’s laws related to homestead exemptions or discuss them with an asset protection attorney, to be sure this will protect your home as some states only offer minimal homestead exemptions.

In addition to the homeowner, spouses may legally acquire an interest in a property under Montana law upon marriage. However, this may not apply if there is a signed premarital agreement that states otherwise. A spouse does not have to be listed on the deed or contribute to the property financially to sign the homestead declaration. Marriage alone qualifies a spouse to have a “legal interest” in the property. Both spouses must sign the homestead declaration; otherwise, the spouse who fails to sign will not be exempt to have interest in the property.

Under the homestead declaration, the death of a married homeowner entitles their living spouse to a homestead allowance of $20,000.

Asset Risks

Asset Protection continues to be very important and the risk and potential liability that you may face is not going to decline at any time. Assets can be at risk due to a number of vulnerabilities, including:

  • Lawsuits by former business partners

  • Liability arising from misconduct

  • Liability as guarantor for the debts of another

  • Personal injury resulting from a motor vehicle accident

  • Personal injury suffered on your premises

  • Personal liability of corporate officers and directors

  • Professional malpractice liability

At Bulman Jones & Cook PLLC our Missoula, Montana family lawyers work with clients to implement proven, legally-sound strategies that will help preserve their wealth and safeguard their assets. We represent professionals, small business owners, property owners, and other clients throughout Montana with the goal of protecting their assets against potential litigation, judgments, and liens.

Asset Protection Service

It is important to start planning early on for the best asset protection. We can help you navigate the legal system to ensure that all of the necessary legal details are handled competently and within the proper time frames. Our asset protection services include:

  • Asset protection during divorce

  • Conservatorships and guardianships

  • Litigation scam artists

  • Medicaid planning

  • Prenuptial agreements and postnuptial agreements

  • Preserving assets to pass on to future generations

  • Protecting assets during a second marriage

  • Protecting assets from creditors

  • Protecting assets in a troubled marriage or divorce

  • Protection of VA benefits

  • Social security disability

  • Trusts

Contact Our Missoula, Montana Asset Protection Lawyers for A Free Legal Consultation

Getting started on an asset protection plan can be a daunting process. Fortunately, you don’t have to go through it alone. The legal professionals at Bulman Jones & Cook PLLC can help you create your plan. The Missoula Asset Inventory and Protection attorneys at Bulman Jones & Cook PLLC have years of Estate Planning experience.

Our lawyers have a sophisticated knowledge of Montana law, Business Planning and wealth preservation strategies that will help put you on solid legal ground. The exact strategies employed by Our Firm may vary depending on the client, the nature of the assets, the country of origin, and the tax regulations that apply to those assets. The ultimate goal is to protect the status of current assets in a manner that is effective, legal and ethical.

Our legal experts can help you understand what an asset protection plan is and how you can utilize one to help you make the most out of your strategy. Taking action on what you learn will help you to protect yourself, your family, and your business. If you are looking for ways to keep your assets safe, contact our asset protection attorney Bradley J. Jones for your Free Consultation.