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    PART 1: ASSET PROTECTION: JOINT TENANCY, TENANCY IN COMMON, TENANCY IN ENTIRETY & COMMUNITY PROPERTY

    THE CONCEPT OF ASSET PROTECTION includes the possibility of placing title in certain assets in the name of a less vulnerable spouse or other family members, or a legal entity. One should be very attentive in transferring title without an open invitation to a “fraudulent transfer” claim against the asset transferred as a result of the possibility of death by the spouse or a family member, or the possibility of a dissolute marriage, or even a court judgment.

    Fraudulent conveyance has to do with transferring assets at less than the “fair cash value” thereby defrauding a potential creditor or the intentional divesting of assets which become unavailable for satisfaction of a lawsuit. Fair cash value means cash or near cash value at the time of transfer, not the price you paid for the asset. Example: you transfer your portion of your equity in your home to your wife for $100.00 and the fair cash value of your portion of the equity was $250,000 or you transfer title to your car to your brother for $10.00.

    The most common methods of holding assets by INDIVIDUALS:

    - Joint Tenancy - Joint Tenancy with right of survivorship - Tenants in Common - Tenancy by the Entirety - Community Property

    LEGAL ENTITIES (Artificial person created by application of law):

    - General Partnership - Limited Partnership - Limited Liability Company - Corporation under Chapter “C” - Corporation under Sub Chapter “S” - Revocable Trust (There are many Revocable Trust variations, since a Trust is nothing more than a Contract) - Irrevocable Trust (There are many Irrevocable Trust variations, since a Trust is nothing more than a Contract) (Read part 2 "Asset Protection: General/Limited Partn

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    a “fraudulent transfer” claim against the asset transferred as a result of the possibility of death by the spouse or a family member, or the possibility of a dissolute marriage, or even a court judgment.

    Fraudulent conveyance has to do with transferring assets at less than the “fair cash value” thereby defrauding a potential creditor or the intentional divesting of assets which become unavailable for satisfaction of a lawsuit. Fair cash value means cash or near cash value at the time of transfer, not the price you paid for the asset. Example: you transfer your portion of your equity in your home to your wife for $100.00 and the fair cash value of your portion of the equity was $250,000 or you transfer title to your car to your brother for $10.00.

    The most common methods of holding assets by INDIVIDUALS:

    - Joint Tenancy - Joint Tenancy with right of survivorship - Tenants in Common - Tenancy by the Entirety - Community Property

    LEGAL ENTITIES (Artificial person created by application of law):

    - General Partnership - Limited Partnership - Limited Liability Company - Corporation under Chapter “C” - Corporation under Sub Chapter “S” - Revocable Trust (There are many Revocable Trust variations, since a Trust is nothing more than a Contract) - Irrevocable Trust (There are many Irrevocable Trust variations, since a Trust is nothing more than a Contract) (Read part 2 "Asset Protection: General/Limited Part

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    ivesting of assets which become unavailable for satisfaction of a lawsuit. Fair cash value means cash or near cash value at the time of transfer, not the price you paid for the asset. Example: you transfer your portion of your equity in your home to your wife for $100.00 and the fair cash value of your portion of the equity was $250,000 or you transfer title to your car to your brother for $10.00.

    The most common methods of holding assets by INDIVIDUALS:

    - Joint Tenancy - Joint Tenancy with right of survivorship - Tenants in Common - Tenancy by the Entirety - Community Property

    LEGAL ENTITIES (Artificial person created by application of law):

    - General Partnership - Limited Partnership - Limited Liability Company - Corporation under Chapter “C” - Corporation under Sub Chapter “S” - Revocable Trust (There are many Revocable Trust variations, since a Trust is nothing more than a Contract) - Irrevocable Trust (There are many Irrevocable Trust variations, since a Trust is nothing more than a Contract) (Read part 2 "Asset Protection: General/Limited Part

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    your car to your brother for $10.00.

    The most common methods of holding assets by INDIVIDUALS:

    - Joint Tenancy - Joint Tenancy with right of survivorship - Tenants in Common - Tenancy by the Entirety - Community Property

    LEGAL ENTITIES (Artificial person created by application of law):

    - General Partnership - Limited Partnership - Limited Liability Company - Corporation under Chapter “C” - Corporation under Sub Chapter “S” - Revocable Trust (There are many Revocable Trust variations, since a Trust is nothing more than a Contract) - Irrevocable Trust (There are many Irrevocable Trust variations, since a Trust is nothing more than a Contract) (Read part 2 "Asset Protection: General/Limited Part

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    ed Liability Company - Corporation under Chapter “C” - Corporation under Sub Chapter “S” - Revocable Trust (There are many Revocable Trust variations, since a Trust is nothing more than a Contract) - Irrevocable Trust (There are many Irrevocable Trust variations, since a Trust is nothing more than a Contract) (Read part 2 "Asset Protection: General/Limited Partnership, Corp Chapter "C"/Chapter "S", LLC, Trusts")

    JOINT TENANCY

    In the United States Joint Tenancy is common for real estate, bank accounts, brokerage accounts, and other assets. Husband and wife are both named on the deed to their home. This is a very bad idea. In my opinion, anyone recommending Joint Tenancy is uninformed and is perhaps guilty of malpractice.

    Disadvantages of holding title in Joint Tenancy:

    1. Loss of step-up in basis upon the death of the first Tenant. You bought the house for $100,000 some years later the cost basis is still $100,000 there’s no step-up in basis at the time of death. 2. Loss of estate tax protection. 3. Possible exposure of the assets to the creditor or the other Tenants. This is extremely and dangerously significant because any Tenant can transfer the asset to someone other than the other Joint Tenants WITHOUT PERMISSION from any of the Joint Tenants. 4. Joint Tenancy disinherits all other heirs, except the remaining Joint Tenant. 5. Possibility of a gift tax consequence may result from the transfer of property into Joint Tenancy. 6. Title in Joint Tenancy supercedes any provisions of a will. 7. Joint Tenancy supercedes any trust with the loss of all trust benefits.

    Advantage of Joint Tenancy:

    In small estates title of Joint Tenancy does avoid unnecessary delay and unnecessary cost of the probate process.

    JOINT TENANCY WITH RIGHT OF SURVIVORSHIP

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