The Nevada Asset Protection Trust
by Jeffrey Matsen
In most cases, when an individual who creates and transfer assets to a Trust (the maker or “Settlor” of the Trust), is also a beneficiary of that Trust, the Trust provisions will not protect the Settlor/beneficiary’s creditors from reaching the assets of the Trust. On the other hand, the law of many foreign jurisdictions provides that when a Settlor transfers assets to an Offshore Asset Protection Trust that Trust can protect the assets of the Trust even though the Trustor is a beneficiary of the Trust.
In the late 1990s, several states began to reverse the general rule concerning self settled Spend Thrift Trusts and statutorily modified their laws accordingly. Delaware and Alaska along with Nevada are among the 11 states that have adopted such legislation. The Nevada legislation was enacted in 1999 and allows the Settlor or creator of the Trust to protect the assets of the Trust from outside creditors even though the Trustor is a beneficiary of the Trust.
This legislation is extremely important and critical to Asset Protect Planning. For many people, the typical revocable living trust that they have set up in California or elsewhere provides zero protection against the creditors of the Settlors of the Trust whether they have a claim arising prior to the establishment of the Trust or after its set up.
Under the relevant provisions of the Nevada law, at least one Trustee must be a Nevada resident. Wealth Strategies Counsel recommends that a Trust company organized under the laws of Nevada be the Trustee of the Nevada Asset Protection Trust. The major advantage of the Nevada laws is the shorter period of time required for protection between the date an asset is transferred to the Trust and the date the protection begins from the creditors of the Trustor. The Nevada statute of limitation is only two years where as the other principal states have a much longer statute of limitations.
Again, it should be emphasized that only a minority of states permit self settled Asset Protection Trusts. The benefits of using the Nevada Asset Protection Trust are obvious not only from the standpoint of high net worth individuals who want to protect their large property holdings, but also for many younger people who are in the process of building their estate and who face high liability exposure such as doctors, lawyers, other professionals and many other type of business owners and executives.
One of the best ways to utilize the Nevada Asset Protection Trust is to create a modular structure combining the Nevada Asset Protection Trust with a limited liability company (”LLC”). Basically, the member interest of the owner of the LLC is transferred to the Nevada Asset Protection Trust which holds the interest, more or less, as a custodian. For example, a husband or wife can be the Settlor of the Nevada Asset Protection Trust. LLCs can then be set up to hold real property and other assets and the member interests of the LLCs can be transferred to the Nevada Asset Protection Trust. It is recommended that a third party own at least 5% of the LLC because the efficacy of the Charging Order remedy limitation of creditors of the LLC is greatly reduced and even eliminated when the LLC is a single member LLC.
Copyright (c) 2009 Jeffrey Matsen
Jeffrey R. Matsen helps his clients structure their business and personal assets the best way possible to preserve, protect and transfer them in the most efficient and tax saving manner. For further information go to => http://www.wealthstrategiescounsel.com
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Specific Benefits To Knowing And Understanding Your Income Tax Bracket
by Roberto Bell
The federal and state tax code offer a mind-boggling number and variety of credits, deductions, exemptions and other types of benefits, many of which change from year to year. What’s more, they change differently among different tax brackets, which are the ranges of income subject to different tax rates and adjustments. Some benefits kick in at higher levels, while others decrease as your income rises “too high” to take advantage of them. Therefore, knowing and understanding your income tax bracket is one of the first things you need to do if you are going to successfully reduce your taxes.
The term “too high,” of course, simply means that your income has passed an arbitrary limit that the IRS or your state agency has set. Limits vary according to the rules being considered. For one example, up to $25,000 of real estate rental losses are deductible against other income, which can be a serious benefit and net you a few thousand dollars each year. However, when income exceeds $100,000, the $25,000 maximum begins phasing out and is completely gone once your earnings exceed $150,000.
Clearly, knowing about your tax bracket, and what benefits both show and drop out as you move among brackets, is extremely important. Your plan for increasing your income has to be developed in accordance with the realities of the tax code, but it is still possible to work within the system, legally and ethically, and set things up in such a way as to eliminate the negative impact of these income limits.
The kids can help you
If you have both minor children and your own business, then you can put the two of them together for a real, measurable benefit. When you hire the kids, you can reduce your business income, thus reducing your taxable (adjusted) income. By changing the bracket you are in, you can avail yourself of the benefits and opportunities otherwise off limits because your income is (here it comes again) “too high.”
With this strategy you can also use the childrens’ lower rates. Each child can earn up to $5,700 in 2009 and be on the hook for exactly “zero” income tax. This income shift not only reduces your own taxable income, it places that income into what is a 0% bracket. Depending on the legal structure of your business, there may be payroll taxes, but even if there are you are looking at a 15.3% rate for those, which will likely be less than your normal tax bracket rate, in any case. With two kids, this single strategy saves you $11,400 in taxes for 2009.
A “C” corporation is a “person,” too
If you move to a “C” corporation structure, you are establishing another “legal entity” as a discrete, individual “taxpayer.” Shifting income, this time to the “C” corporation, will once again reduce your own taxable income, which continues your move to a lower bracket with its lower rates and other positive benefits. One of the best things that happens is that you realize additional tax savings. The “C” corporation’s tax rate will be lower, starting as it does with an initial one of just 15%.
Assuming your rate is higher than that, which is not an unsafe assumption, this means that you are not merely reducing the taxable income figure, you are actually moving your income to a lower tax rate. This is where your additional savings come in. However, we are talking “benefits” in general, not just as regards the tax liability, and monies in your “C” corporation can pay for certain employee benefits available within that specific corporate structure. These changes, which you know to institute because you understand how your bracket affects your return, can result in thousands of dollars of savings annually.
Other approaches
Sometimes, your income will be just slightly over a certain point at which some (or many) tax benefits are eliminated. Sometimes you can resolve this problem by using what’s called the “bunching strategy,” where you combine income and expenses so that your net will alternate between low and high each year. With this strategy, you can at least give yourself an opportunity to lower your bracket to take advantage of the tax benefits every second year, which is better than not at all.
The fact is, simple tax planning can save you a lot of money, regardless of your bracket, income, assets or business. Tax planning can be approached and applied in many different ways, and there is always a way, no matter what your specific situation, to reduce taxable income while making the same amount of (or even more) money. It is never too early to start your tax planning, and getting it moving “now” is advisable, no matter when “now” happens to be.
1040-Tax Extension will file your online tax extension with the IRS and guarantee that the IRS will accept your application. Visit us online for automatic extension on your individual tax return.
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A Factual Guide To Government Grants
by John Stance
A lot of people work for a living. They work because that is the backbone of what we each represent as individuals and to our self worth. Having a job or working for yourself says a lot about yourself. But sometimes economics throws us a curve ball in life and at times we need additional money that we just don’t have.
That’s when the government can help us in a number of different ways. The government has all kinds of projects and plans that they offer the general public. One of these type projects can be in the form of grants.
Government grants is really free money given to qualified people that have written a proposition and been approved. Whether you have a job or not if you can write a proposal that identifies a financial need for a particular project in a specific category the government is obliged to help you out financially.
Financial assistance will be given to qualified civilians that are over 18 years of age and are citizens of the United States of America to help them out in a particular situation.
Grants can be approved to the fortune and not so fortunate people. There are so many grants available that a good deal of people think it’s too much exertion to investigate. For those who take the time to research and apply for a grant can find themselves released from the bonds of debt.
Government grants are awarded to anyone that is qualified and meets the criteria as set forth in the guidelines. From the working class people to the independently wealthy people of business.
The only drawback to the government grant program is that it is not advertised as much as it should be. By chance you’re reading this article otherwise most people would never know about the potential of these government grants. The majority of these grants go unused and the money allocated to these special projects go back into a trust fund only to be re allocated the next year.
Why not apply for them and better your life? Do you want to pay off your bills? Do you finally want to start that home business you’ve been thinking about for a long time? Here’s your chance.
As with dealing with government in any form there are rules and procedures that you must follow. You can’t get away from submitting the proper form. Honesty is the best policy when filling out these forms because it will only come back to haunt you when the validation process kicks in.
If you do get approved then there are strict guidelines that you must follow as provided by the category project. These guidelines are dictated by government and there may be many but it is certainly worth the effort. Don’t you think?
It really doesn’t matter when you get approved for these grants about your financial strength or your background. Even if your credit history or FICO score is less than glamourous it doesn’t matter. If you write up a grant proposal that satisfies the guidelines of the grant projects then you are in.
Truly there is no reason why you shouldn’t be able to qualify for at least some of the billions of available dollars that the government wants to give away.
If you get the sense that there is a timetable here you guessed right. Not all grants are available all year round. There are submission deadlines that must be followed. Everything is run like clockwork and if you want more information about how to apply for government grants then read on.
Note again that these government grants are free money, non-taxable and does not require the submitter to a credit check, security deposit or co-signers.
Take the chance to find out if you can qualify for a government grant.
Knowing that you have a chance here to advance yourself just by taking a look at government grants gives you an edge in life. Most people will look at this and click away but I believe you know better than that. Go ahead and check out http://www.wherecanifindjobs.com to find out about government grants and see if your destiny can change within 30 days.
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10 ways to organize your business finance
by Chris Clarke
10 Easy Ways To Organize Your Business Finances
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it’s a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won’t get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it’s done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you’re paying bills as you receive them, chances are you’re spending too much time in front of the checkbook. Although bills may state “Payable Upon Receipt”, there’s always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it’s Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn’t be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it’s a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don’t let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It’s easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think…
For the full article visit us at http://www.mtgmodexpertz.com
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Learn The Basics Of Currency Trading
by suegold
Investors and traders around the world are looking to the Forex market as a new speculation opportunity. But, how are transactions conducted in the Forex market? Or, what are the basics of Forex Trading? Before adventuring in the Forex market we need to make sure we understand the basics, otherwise we will find ourselves lost where we less expected. This is what this article is aimed to, to understand the basics of currency trading.
What is traded in the Forex market?
The instrument traded by Forex traders and investors are currency pairs. A currency pair is the exchange rate of one currency over another. The most traded currency pairs are:
EUR/USD: Euro
GBP/USD: Pound
USD/CAD: Canadian dollar
USD/JPY: Yen
USD/CHF: Swiss franc
AUD/USD: Aussie
These currency pairs generate up to 85% of the overall volume generated in the Forex market.
So, for instance, if a trader goes long or buys the Euro, she or he is simultaneously buying the EUR and selling the USD. If the same trader goes short or sells the Aussie, she or he is simultaneously selling the AUD and buying the USD.
The first currency of each currency pair is referred as the base currency, while second currency is referred as the counter or quote currency.
Each currency pair is expressed in units of the counter currency needed to get one unit of the base currency.
If the price or quote of the EUR/USD is 1.2545, it means that 1.2545 US dollars are needed to get one EUR.
Bid/Ask Spread
All currency pairs are commonly quoted with a bid and ask price. The bid (always lower than the ask) is the price your broker is willing to buy at, thus the trader should sell at this price. The ask is the price your broker is willing to sell at, thus the trader should buy at this price.
EUR/USD 1.2545/48 or 1.2545/8
The bid price is 1.2545
The ask price is 1.2548
A Pip
A pip is the minimum incremental move a currency pair can make. A pip stands for price interest point. A move in the EUR/USD from 1.2545 to 1.2560 equals 15 pips. And a move in the USD/JPY from 112.05 to 113.10 equals 105 pips.
Margin Trading (leverage)
In contrast with other financial markets where you require the full deposit of the amount traded, in the Forex market you require only a margin deposit. The rest will be granted by your broker.
The leverage provided by some brokers goes up to 400:1. This means that you require only 1/400 or .25% in balance to open a position (plus the floating gains/losses.) Most brokers offer 100:1, where every trader requires 1% in balance to open a position.
The standard lot size in the Forex market is $100,000 USD.
For instance, a trader wants to get long one lot in EUR/USD and he or she is using 100:1 leverage.
To open such position, he or she requires 1% in balance or $1,000 USD.
Of course it is not advisable to open a position with such limited funds in our trading balance. If the trade goes against our trader, the position is to be closed by the broker. This takes us to our next important term.
Margin Call
A margin call occurs when the balance of the trading account falls below the maintenance margin (capital required to open one position, 1% when the leverage used is 100:1, 2% when leverage used is 50:1, and so on.) At this moment, the broker sells off (or buys back in the case of short positions) all your trades, leaving the trader “theoretically” with the maintenance margin.
Most of the time margin calls occur when money management is not properly applied.
How are the mechanics of a Forex trade?
The trader, after an extensive analysis, decides there is a higher probability of the British pound to go up. He or she decides to go long risking 30 pips and having a target (reward) of 60 pips. If the market goes against our trader he/she will lose 30 pips, on the other hand, if the market goes in the intended way, he or she will gain 60 pips. The actual quote for the pound is 1.8524/27, 4 pips spread. Our trader gets long at 1.8530 (ask). By the time the market gets to either our target (called take profit order) or our risk point (called stop loss level) we will have to sell it at the bid price (the price our broker is willing to buy our position back.) In order to make 40 pips, our take profit level should be placed at 1.8590 (bid price.) If our target gets hit, the market ran 64 pips (60 pips plus the 4 pip spread.) If our stop loss level is hit, the market ran 30 pips against us.
It’s very important to understand every aspect of trading. Start first from the very basic concepts, then move on to more complex issues such as Forex trading systems, trading psychology, trade and risk management, and so on. And make sure you master every single aspect before adventuring in a live trading account.
Author Tony Williams manages a website that reviews forex trading systems especially forex brotherhood trading system which is a unique forex coaching program that offers not just outstanding forex trading systems coaching but in combination with an equally unique automated forex trading software. Visit now to learn more.
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