IS THE DECISION UNDER IN RE HUBER IMPORTANT TO ANYONE OTHER THAN MR. HUBER?

The April 2013 bankruptcy court decision in the Huber case has quickly produced some scholarly legal discussion and academic articles. It has also quickly degenerated into some sensationalism in the popular press. Huber involved a Washington state real estate developer who settled an Alaska asset protection trust in 2009. Factually, not a lot more needs to be written; the reader has already surmised based on these few facts alone that...
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3904 Hits

JOHN DOE SUMMONS ISSUED IN EFFORT TO OBTAIN INFORMATION ON NON-COMPLIANT TAXPAYERS

     On April 30, 2013, the Justice Department announced that a federal court in San Francisco entered an order authorizing the Internal Revenue Service to serve a “John Doe summons” seeking information concerning U.S. taxpayers who may hold offshore accounts at FirstCaribbean International Bank (“FCIB”).  This type of summons is used by the IRS to obtain information about the possible violation of internal revenue laws by individuals whose identities...
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2446 Hits

ASSET PROTECTION, CONTEMPT OF COURT, AND THE LATEST DECISION IN THE GRANT CASE

The issue in the contempt of court aspect of the U.S. v. Grant case was whether Raymond and Arline Grant (the “Grants,” or individually by first name) in fact had the power to repatriate trust assets based upon the provisions of two offshore trusts they settled in the early 1980s (one of which was settled in Bermuda, and one of which was settled in Jersey, Channel Islands).   Procedural Background...
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3546 Hits

ANALYZING THE RECENT FRAUDULENT TRANSFER CASE OF KILKER

In Kilker v. Stillman , [1] and in what is yet another good argument in favor of offshore trust planning versus domestic trust planning, the California Court of Appeal for the 4 th District held that the California Uniform Fraudulent Transfer Act (“CUFTA”) had application to a case brought four years after a Nevada trust was settled by defendant Stillman, a California resident, which was eight years after Stillman’s services...
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8072 Hits

TRUST WITHSTANDS ALTER EGO ATTACK IN BANKRUPTCY

Although the case of In re Yerushalmi , 2012 WL 5839938 (Bkrtcy. E.D.N.Y., Slip Copy, Nov. 19, 2012) does not involve a foreign or domestic asset protection trust, it does have important implications in the asset protection setting. The bankruptcy court in Yerushalmi refused to pierce a Qualified Personal Residence Trust (known in the vernacular as a “QPRT”) that was settled in 1995 and funded in 1996; the court held...
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6823 Hits

IRS RULES A FIDEICOMISO IS NOT A TRUST

In order to comply with local law, Mexican real estate held by foreign interests will often be held in a “fideicomiso,” which is a vehicle under the law of Mexico that has certain trust-like features. Code Section 643(i), enacted by FATCA, provides that any use of foreign trust property by a U.S.grantor, beneficiary, or any person related to a U.S.grantor or beneficiary will be treated as a "distribution" for federal...
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4067 Hits

Generous 2012 Gift and Estate Tax Opportunities Extend Beyond the Gift Itself

As the end of the year rapidly approaches, many clients are considering gift giving to take advantage of the most generous lifetime gift tax exemption that Congress has ever allowed .  This is especially important now because this generous exemption expires at midnight this coming December 31 and likely will not to be extended into 2013.   The generous gift tax exemption mentioned above is currently $5,120,000.00 per person.  On...
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Importance of Solvency Affidavit Highlighted in Asset Protection

The very recent case of Goldberg v. Rosen [1] is a case of first impression with respect to asset protection trusts, as it is the first time a settlor’s Affidavit of Solvency was so pivotal in the case. An Affidavit of Solvency is typically required not only by the asset protection attorney but by the trustee(s) of the trust as well, for these professionals want the client to swear or...
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5847 Hits

Rush to the Finish Line

The Rush University Medical Center, Appellant v. Roger Sessions et. al., Trustees, Appellees [1] decision was recently handed down by the Illinois State Supreme Court (the “Court”).   Rush involved an individual who settled a Cook Islands Trust in 1994, and subsequently (but unrelated thereto) intentionally failed to fulfill a 1995 philanthropic pledge he made to Rush University (the “University”). Proceedings to enforce the pledge were brought by the University...
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3793 Hits

IRS Has Problems With Foreign Trust Tax Forms

In late August 2012, the American Institute of Certified Public Accountants (“AICPA”) requested that the Commissioner of the Internal Revenue Service resolve problems regarding the IRS’s faulty processing of Form 3520, entitled “Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts” (the “Form”). According to AICPA, certain taxpayers have been receiving letters threatening penalties for non-compliance, when, in fact, the Form has been properly completed...
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3005 Hits

Seminars & Events:

April, 2017 - CELESQ
“An Asset Protection Planning Primer for Estate Planning, Tax and Creditors Rights Lawyers”
Live Web Cast
May 31 – June 1, 2017 - 

SOUTHPAC TRUST OFFSHORE PLANNING INSTITUTE CONFERENCE 2017, “Asset Protection in a Changing World” (31 May 2017) and “Questions & Answer Panel on Industry Challenges to Asset Protection Structures” (1 June 2017)
Las Vegas, Nevada

 

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Contact Information

Barry S. Engel
Email: info@engelreiman.com