multi-member LLCs because they can deliver better asset protection for you. And you can efficiently add a second member to your LLC, such as a spouse or child, with a tiny fractional ownership interest. Let me mention the new taxes being debated and voted on right now in Washington. We have not seen this level of tax increase proposals in over 40 years. And the government also wants to take away planning tools that many American families have used for years to help keep assets like property in the family for multiple generations. The House Ways and Means Committee is beginning to vote, so now we are seeing what they are actually willing to vote on. It’s not good. Some of the worst provisions of the proposals have not seen daylight yet with the recent voting and that is a good sign. But this could change as the proposals work their way through the process. Big tax increases on transfer taxes are alive and well. It’s really important that anyone who owns property understand what is being proposed, what is being voted on right now and how to ensure
your planning is airtight to fend off the big changes that are coming. What is involved is coordination among your asset protection, estate planning and tax issues. And maybe even big picture financial planning. In normal times you should have these disciplines integrated and now it’s more important than ever. LLCs, for example, can be an effective tool for dealing with Prop. 19 in California so that you are not hit with reassessment. There are charitable planning tools that can help to protect your property from transfer taxes and other forms of taxation. In summary, property owners need to understand where liability comes from and then take the proper steps to form the legal structure to protect themselves. You need to also understand the new taxes being voted on and how to plan for them right now. Make sure your estate plan is updated and integrated with your asset protection planning. Now is not the time to bury your head in the sand.
Bradley Barth is a partner and Supervising Attorney of the firm’s Transactional and Estate Planning Department encompassing business formations and transactional matters, estate planning, domestic and offshore asset protection, probate, trust administration, tax and real estate law. He views his role as a trusted and long-term advocate of asset protection planning in helping his clients achieve and protect their financial goals and lifetime accomplishments. BRADLEY BARTH, ESQ. Partner BarthCalderon, LLP (714) 704-4828 ext. 114 For a complimentary planning assessment contact paul@barthattorneys.com
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