Asset Protection and Estate Planning Strategies 财产保护与遗产规划策略 Presented by: Michelle Bau Yu, Attorney at Law Website: www.yuattorney.com Tel: 415.409.8529 www.yuattorney.com Tel: 415.409.8529 1
Executive Summary 概要 2011 Estate and Gift tax Exemption Asset Protection The importance of holding title in real estate Insulating real estate in an LLC (Limited Liability Company) Passing real estate to the next generation What is a living trust Why do I need a living trust www.yuattorney.com Tel: 415.409.8529 2
2011 Estate and Gift Tax Exemption 遗产税和赠与税的豁免情况 Estate and Gift tax rate is 35% 税率为 35% $5M lifetime exemption during 2011 and 2012 每位被继承人一生的豁免总额为五百万美元 Additional $13,000/person annual gift tax exemption 每位受赠人豁免额度为 13,000 美元 / 年 Advantages of Making a Gift 优点 Reduce future estate tax 减少未来应支付的遗产税 Reduce income tax 减少个人所得税 Disadvantages of Making a Gift 缺点 Loss of Control 失去对财产的控制权
Asset Protection: The Importance of Holding Title in Real Estate Joint Tenancy creates unintended and irreversible problems: Pay more taxes to the government 增加税收支出 Loss of control 减少控制权 Exposure to the other tenant s lawsuits and creditors 可能承担其他共有人的诉讼 债务风险 No backup beneficiary if joint tenant is not alive 共有人过世后, 没有其他的受益人 Disinherits all other family members 剥夺其他家庭成员的继承权 Possible gift tax consequence of 35% 可能需支付 35% 的赠与税
Asset Protection: Insulating real estate in an LLC Internal risk: 内部风险 The property owner is liable for all injuries on the property (e.g. slip and fall) 所有人将对由财产引起的所有人身伤害负责 External risk: 外部风险 A legal judgment against a property owner will risk all real estate under the owner s s name 损失可能波及所有人名下的其他不动产 Insurance is not sufficient protection www.yuattorney.com Tel: 415.409.8529 5
Features of an LLC Members and managers are not personally liable for the obligations of the LLC 成员 管理者不对 LLC 的债务承担个人责任 Choice of pass-through or corporate tax treatment 可以选择纳税方式 Can be a single-owner LLC 允许一人所有 Thus, an LLC is an excellent way to shield your assets from your liabilities and you from your liabilities
Passing Real Estate to the Next Generation What is a revocable living trust? 什么是可撤销的生前信托? Legal document which avoids Probate Court 法律文件无需遗嘱检验法院的检验 You decide who receives your assets and how 由您决定谁将获得您的资产, 如何获得 You maintain control of your assets while alive 你在生前依然可以控制您的资产 A trust is a private document 信托是私人文件 No separate tax or trust records for the trust 无其他税负或信托登记要求
Do I need a Living Trust? Probate court is very expensive ( 4-7% of gross assets) a living trust avoids probate 遗嘱检验法院的费用非常昂贵 ( 大约为总资产的 4-7%) For married couples, a trust allows you to pay less taxes to the government 对于已婚夫妇, 信托可以减少您的税收支出 If you have children under 18, you decide when and how they will receive your money 如果您有 18 岁以下的孩子, 由您决定他们何时 如何继承 A trust allows you to transfer your real estate quickly to your family members 信托有助您及时向家人转移不动产
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