Page 14 - Boca Exposure - December '24

Page 14, Boca Exposure
Book Review

’Twas The Bite Before “I taped it.” *****
“You taped an English soccer game? Voluntarily?”
Christmas “Yup.” … On a doggie note, my
“Does it bother you that they score about once every wife Linda and I will be
By Nils A. Shapiro couple of months? sharing our first holiday
When I was trying to “Nope.” season with Lacey, who
decide on an appropriate … “I watch along with him for a minute or so, joined our family three
book to review for this pretending to be interested, then I leave. I could watch months ago. Lacey, a
December column, several until someone scores, but by then Bobby’s trial might have “teacup” Maltese who
features on the cover of this started. … weighs just 3-1/2 pounds,
month’s selection attracted “I can’t sugarcoat this or enter a state of denial … will celebrate her first
me: the obvious connection the simple fact is that I have a son who prefers soccer to birthday on December 20,
to the Christmas holiday, good old American college football. and is already completely
the cute twist of the “Bite” “I am raising a Communist.” bonded with my wife
for “Night” in the title and As if David Rosenfelt’s delightful writing style weren’t Linda, as you can see here.
the adorable Dalmatian enough to have me join his vast base of admiring readers,
with the Gingerbread Man cookie in his mouth—an how about the following: He and his wife live in Maine
irresistible draw for the doggie lover I am. with 25 of the 4,000 dogs they have rescued. Do I need
What I did not to say more?
realize until I arrived
home, opened the book,
noted the author ’s
credentials and began
reading this novel is
that I had struck literary
gold in my selection! Asset Protection in Estate Planning
Within the first few
pages I understood why
You’re beginning to accumulate substantial wealth, but you worry about protecting it from future potential creditors. Whether your concern
David Rosenfelt has is for your personal assets or your business, various tools exist to keep your property safe from tax collectors, accident victims, health-care
developed a massive providers, credit card issuers, business creditors, and creditors of others.
fan base of readers To insulate your property from such claims, you’ll have to evaluate each tool in terms of your own situation. You may decide that insurance
for his more than 40 and a Declaration of Homestead may be sufficient protection for your home because your exposure to a claim is low. For high exposure, you may
want to create a business entity or an offshore trust to shield your assets. Remember, no asset protection tool is guaranteed to work, and you may
already published have to adjust your asset protection strategies as your situation or the laws change.
novels, over half of Liability insurance is your first and best line of defense
t h e m a b o u t An d y Liability insurance is at the top of any plan for asset protection. You should consider purchasing or increasing umbrella coverage on your
Carpenter, the same homeowners policy. For business-related liability, purchase or increase your liability coverage under your business insurance policy. Generally, the cost
attorney who stars in ’Twas The Bite Before Christmas. of the premiums for this type of coverage is minimal compared to what you might be required to pay under a court judgment should you ever be sued.
In this novel, Carpenter is serving as defense attorney A Declaration of Homestead protects the family residence
Your primary residence may be your most significant asset. State law determines the creditor and judgment protection afforded a residence by
for a friend and excellent neighbor who, shockingly, way of a Declaration of Homestead, which varies greatly from state to state. For example, a state may provide a complete exemption for a residence
has been arrested and charged with the murder of a (i.e., its entire value), a limited exemption (e.g., up to $100,000), or an exemption under certain circumstances (e.g., a judgment for medical bills). A
high-ranking mobster. It turns out that his friend, to the Declaration of Homestead is easy to file. You pay a small fee, fill out a simple form, and file it at the registry where your deed is recorded.
surprise of Carpenter and everyone else in town, has been Dividing assets between spouses can limit exposure to potential liability
living among them as part of the government’s witness Perhaps you work in an occupation or business that exposes you to greater potential liability than your spouse’s job does. If so, it may be a
protection program after having earlier been a part of good idea to divide assets between you so that you keep only the income and assets from your job, while your spouse takes sole ownership of
the mob but who “turned” and gave evidence at great your investments and other valuable assets. Generally, your creditors can reach only those assets that are in your name.
personal risk. Business entities can provide two types of protection — shielding your personal assets from your
With his friend and client declaring himself to be business creditors and shielding business assets from your personal creditors
Consider using a corporation, limited partnership, or limited liability company (LLC) to operate the business. Such business entities shield

completely innocent of the new charges, Carpenter must the personal assets of the shareholders, limited partners, or LLC members from liabilities that arise from the business. The liability of these
get to the truth about the “evidence” and find the real owners will be limited to the assets of the business.
Conversely, corporations, limited partnerships, and LLCs provide some protection from the personal creditors of a shareholder,
killer. (He also takes on the responsibility of caring for limited partner, or member. In a corporation, a creditor of an individual owner is able to place a lien on, and eventually acquire, the shares of the
his friend/client’s two dogs while he is in prison.) This debtor/shareholder, but would not have any rights greater than the rights conferred by the shares. In limited partnerships or LLCs, under most
won’t be an easy case: The victim was found dead in the state laws, a creditor of a partner or member is entitled to obtain only a charging order with respect to the partner or member’s interest. The
trunk of his client’s car, and his bloodstains on the client’s charging order gives the creditor the right to receive any distributions with respect to the interest. In all respects, the creditor is treated as a mere
assignee and is not entitled to exercise any voting rights or other rights that the partner or member possessed.
clothing. It’s a well-told tale with a surprising, satisfying
and credible ending. Certain trusts can preserve trust assets from claims

People have used trusts to protect their assets for generations. The key to using a trust as an asset protection tool is that the trust must be
What makes this book special is Rosenfelt’s writing irrevocable and become the owner of your property. Once given away, these assets are no longer yours and are not available to satisfy claims
style. But there are so many reasons to love this author against you. To properly establish an asset protection trust, you must not keep any interest in the trust assets or control over the trust.
Trusts can also protect trust assets from potential creditors of the beneficiaries of the trust. The extent to which a beneficiary’s
it is difficult to know where to begin. Most importantly, creditors can reach trust property depends on how much access the beneficiary has to the trust property. The more access the
his tongue-in-cheek humor will keep a grin on your face beneficiary has to the trust property, the more access the beneficiary’s creditors will have. Thus, the terms of the trust are critical.
from first page to last. I kept thinking that he would make There are many types of asset protection trusts, each having its own benefits and drawbacks. These trusts include:
a great writer for the Saturday Night Live TV show. • Spendthrift trusts
• Discretionary trusts
Here, for example, are just a couple of examples early • Support trusts
on when Andy Carpenter is describing how he feels about • Personal trusts
certain aspects of his family life. (I have omitted large • Self-settled trusts
Since certain claims can pierce domestic protective trusts (e.g., claims by a spouse or child for support and state or federal claims), you can
sections of the text for lack of space here and substituted bolster your protection by placing the trust in a foreign jurisdiction. Offshore or foreign trusts are established under, or made subject to, the laws
ellipses. …) of another country (e.g., the Bahamas, the Cayman Islands, Bermuda, Belize, Jersey, Liechtenstein, and the Cook Islands) that does not generally
“I don’t like eggnog, and I don’t think anybody does. honor judgments made in the United States.
It’s too thick and too sweet for my taste … like drinking A word about fraudulent transfers
melted chewing gum. I just tried some again anyway and The court will ignore transfers to an asset protection trust if:
found that sucking some of this batch through a straw • A creditor’s claim arose before you made the transfer
• You made the transfer with the intent to defraud a creditor
requires either a serious pair of lungs or a hydraulic • You incurred debts without a reasonable expectation of paying them
pump; it’s not nearly good enough to justify that amount This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the
of work. foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a
recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is
“But the reason I doubt that anyone really likes it is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance
may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate
that it’s only popular at Christmas. Good food or drink professional. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other government
agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Investment Advisory
should not require a holiday to justify consumption … I services offered through Raymond James Financial Services Advisors, Inc. The information contained within this commercial email has been obtained from sources considered reliable, but we do
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feel the same way about fruitcakes and candied yams; if
you like them, eat them all year. Otherwise, I don’t want Raymond James Financial Services
to hear about them.”
Or this passage about his son, Ricky. Arthur Rottenstein
“Ricky is watching a soccer game.
“He likes soccer.
“I’ve known this for a while, but it’s still jarring. I’m Registered Securities Principal
a good parent, so as much as I hate soccer and hate even 301 E. Yamato Road, Suite 3160
more that he likes it, I’m not about to say anything or
be critical. He has to live his own life and make his own Boca Raton, FL 33431
choices, even a ridiculous one like this. 561-241-6616
“What are you watching, Rick?”
“It’s a Premier League game. Liverpool is playing Arthur.Rottenstein@RaymondJames.com
Chelsea.”
“They’re five hours ahead there. Are they playing at bocaratonfinancialplanner.com
midnight?”