Shielding Your Nest Egg

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We Care Because…

• Help Our Clients

• Help Ourselves

• Assets Under Management

• Personal Liability Protection

• Personal Asset Protection

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Asset Protection Basics

• The Why• Not everyone manages life well

• Creditors and predators

• Things happen

• It’s litigious out there!

• The point is to make it hard for a creditor

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Asset Protection Basics (cont.)

• The When• When things are copasetic

• When is it too late?• After the claim has arisen

• What happens if it’s too late?• Fraudulent conveyance laws

• Possible repercussions

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Asset Protection Basics (cont.)

• The How

• Exemption Planning

• The law allows you to keep some of your stuff

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Asset Protection Basics (cont.)

• The How (cont.)

• Entity Planning

• Corporations and LLCS

• Spendthrift trusts

• Domestic asset protection trusts

• Nevada, Delaware, Alaska

• Offshore planning

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Retirement Plan Basics

• ERISA Plans

• IRAs

• Required minimum distributions

• Stretch-outs

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Retirement Plan Basics (cont.)

• Trust as owner• Trusteed IRA

• Trust as beneficiary• You can, you can, YOU CAN name a trust as

beneficiary!

• Valid under state law

• Irrevocable on participant’s death

• Beneficiaries are identifiable

• Certain documents to plan administrator

• All beneficiaries are individuals

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Asset Protection for the Plan Participant

• Exemption planning

• Code of Civil Procedure § 704.115

• Federal bankruptcy exemption does not apply

• Other exempt property

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Asset Protection for the Plan Participant (cont.)

• Entity planning• LLC, corporation planning won’t work

• Trusteed IRA• Domestic asset protection trust

• Offshore trust

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Asset Protection for the Beneficiary

• Traditional planning: the outright distribution• No asset protection

• Inherited IRA• Potential for asset protection

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Asset Protection for the Beneficiary (cont.)

• Conduit trust• RMDs are distributed to beneficiary

• Stretch-out only for the oldest beneficiary’s life

• Creditors, predators can reach the RMDs

• The rest is safe

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Asset Protection for the Beneficiary (cont.)

• Accumulation trust• Essential for special needs planning

• Stretch-out only for the oldest beneficiary’s life

• RMDs are retained in trust

• Creditors shouldn’t be able to access account

• Potential adverse income tax consequences

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The Moral of the Story

• It ain’t easy

• Other planning may be simpler• Life insurance

• It can be done

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Thank You!

Questions?

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www.PasadenaLawGroup.com