IS ASSET PROTECTION REALLY THAT IMPORTANT?

A Safeway tractor-trailer was legally parked on the side of U.S. Highway 101 near an intersection.  A driver in a pick-up truck attempting to cross over and enter 101 collided with a motorcyclists.  The motorcyclists filed suit against Safeway, the driver of the Safeway truck, the driver of the pick-up truck and the State of California.  The California Court of Appeals affirmed a jury verdict awarding substantial damages to the plaintiffs, apportioning 35% of the fault to Safeway.  (Lawson et al. v. Safeway, Inc. et al.)

On January 24, 2011 the U.S. Supreme Court expanded Title VII’s anti-retaliation provision to cover, in some circumstances, claims brought by third parties.  (Thompson v. North American Stainless, LP)

And, on March 1, 2011, the U. S. Supreme Court held that “if a supervisor performs an act motivated by antimilitary animus that is intended by the supervisor to cause an adverse employment act, and if that act is a proximate cause of the ultimate employment action, then the employer is liable under USERRA.”  (Staub v. Proctor Hospital)

Yes, comprehensive asset protection planning should be utilized by every business owner!

PROPER ADVANCE PLANNING MAY ELIMINATE FUTURE COSTLY PROBLEMS

Rule No. One – plan carefully before you execute any estate planning documents.  On February 23, 2011, the Massachusetts Court of Appeals held that after a plaintiff executed an irrevocable trust he could not later seek to revoke it on the grounds of a mistake in the document.  The fact that the plaintiff may not have known all of the terms of the trust he executed does not qualify as a mistake.  (MacLeod v. McManus)

Rule No. Two – misunderstanding of current state and federal estate tax laws can cause a myriad of problems.  Many individuals assume that if their estate is under $5 million they no longer need to plan.  However, the law is scheduled to revert back to only $1 million in 2013.  Furthermore, many states have their own estate and/or inheritance tax laws and have decoupled from the federal estate tax and allow for an exemption of $1 million or less.

Rule No. Three – Listening to advisors who recommend just “giving it all away” is not advisable.   While this may seem like a simple and cheap solution, there are numerous pitfalls with such planning, such as: loss of control, no protection for heirs in the event of future divorce, litigation, bankruptcy or incompetency.   

Advanced planning, utilizing properly drafted estate preservation/asset protection documents can eliminate the foregoing problems and many others.

Now is the time to properly plan your estate.  The need to comprehensive and protective estate planning/asset protection is now, before it is too late. 

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