Do Physicians Really Need Asset Planning?

A couple consulted me about writing a will and trust for their family. The husband is a doctor and the wife is a lawyer, both in private practice. They had two young children under the age of 18 and no prior marriages. Both carried malpractice insurance for their professions and an umbrella policy. They had good cars and a residence in a nice neighborhood. They also had retirement plans and mutual funds and children in private school. They were saving for college through 529 Plans.

They wanted to protect their families and assets from lawsuits and creditors. Missouri is a great asset planning state, but the planning to protect assets should start at least four years in advance—creditors can sue to set aside the transfer. Assets can be attached if the transfer (to another person or entity or trust) occurs and the lawsuit is filed within four years of the transfer.

The best way to protect assets is to transfer the asset to a trust, other entity, or person with no recourse to the owner. However, a house jointly owned by husband and wife is not protected in the event of a divorce the property, and can be divided between the parties. The creditors of the deceased spouse can also sue to recover from the sale of the residence. Hence holding assets in joint name may not always be the answer.

The 529 plans are not subject to federal income tax and can be paid in advance up to five years depending on the plan—and are excluded from the estate of the deceased—to offer asset protection. Professional and umbrella polices may be insufficient to satisfy creditors in a lawsuit, which means that protecting other assets becomes imperative.

See you in my next blog.

Nalini S Mahadevan, JD, MBA
Immigration Attorney St. Louis, Missouri
nsm@mlolaw.us

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The information is not meant to create a client-attorney relationship. This blog is for informational purposes only, and is not a substitute for legal advice. Situations may differ based on the facts.

Copyright 2014. All rights reserved.

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Facts About Immigrants in Missouri

In 1990, the percentage of foreign-born in Missouri was only 1.6%; since then, Missouri’s cultural makeup has changed drastically to include large amounts of Latinos, Asians and other immigrant populations. Missouri’s current foreign-born population is 4%; 41.6% of “New Americans” in Missouri have become naturalized citizens who can vote. About 5% of Missouri’s ‘New Americans’ are either Latino or Asian.

These New Americans also contribute economically to Missouri as business owners, workers, professionals, tax-payers and consumers. Together, Latinos and Asians possess $9.8 billion in consumer purchasing power — their businesses make $5.1 billion and employ 34,000 people. Foreign students also enrich the community: Missouri’s total of 16,061 foreign students contribute $417.9 million to the state’s economy.

A little bit of food for thought: if Missouri’s unauthorized immigrants — which total 1.3% of our workforce — were deported from the state, we would lose $2.3 billion in economic activity and roughly 13,859 jobs.

See you in my next blog.

Nalini S Mahadevan, JD, MBA
Immigration Attorney
Lowenbaum Partnership, LLC
St. Louis, Missouri

The information is not meant to create a client-attorney relationship. This blog is for informational purposes only, and is not a substitute for legal advice. Situations may differ based on the facts.

Tara Mahadevan

Copyright 2013. All rights reserved.

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Identity Theft

Was a victim of identity theft


I met a friend yesterday who told me that his identity was stolen a few weeks ago. Then a friend’s daughter from Cleveland told me the same thing.  I too was a victim of identity theft a few years ago. The thief changed my address and charged 20K to my card. Not a pleasant experience. The bank seemed to think it was my fault. I had to file an affidavit that I had not stolen my own credit card!! Recently, I was at a gas station when I noticed the customer in front of me open their wallet and had their social security card and driver’s license on either side of their wallet in all its shiny glory! I have read recent reports that affluent consumers and people with excellent credit could be at higher risk for identity theft. So here are my thoughts on the subject of what to do and how to prevent it.

Of course, please do not carry your social security (SS) card in your wallet, nor a copy of the card. If your SS # has been lifted, get a new SS # from the Agency. See Social security and Identity Theft, for more information on this subject. Don’t write your PIN number on your check cards. Find a number you can remember and memorize it. Don’t use your birthdate or your anniversary or your children’s birthdays as PIN numbers. Thieves find these easy to locate. Make photocopies of your credit cards. If your wallet is stolen or your identity stolen, make a police complaint and obtain the complaint number.  Report it to the credit reporting agencies at Experian fraud alert, Equifax, and Transunion.  Their phone numbers are Phone: 800-525-6285 or: 404-885-8000 (Equifax); and Phone: 888-397-3742 (Experian) and Phone: 800-680-7289 (Transunion). In general, a fraud alert for 90 days or 7 years is a good start to prevent further thefts or even to prevent one. You can also freeze your credit, so that no one including you can open a new credit card or other line of credit without alerting you. Your financial institution also has paid services to alert you to changes. If you are going out-of-town, don’t alert your followers on Twitter, Facebook and other social media! Thieves are followers too! Military active duty personnel can make an active duty fraud alert posted to their file. File a security alert or victim statement with all national credit bureaus; inform each creditor, document all the contacts (names, telephone numbers, dates, times, subject/details of your talk with the creditor’s representative). Every creditor has a different process, so make sure you understand what is expected of you. Above all make a note of the details. Follow up on the phone calls and keep the notes in a file so that you can monitor your credit cards and accounts when a new fraud shows up. You can add an Extended Fraud Victim Alert to your report by submitting a copy of a valid identity theft report that you have filed with a Federal, State or local law enforcement agency. An Extended Alert will remain on your report for seven years. When you get mail, shred or tear up credit card solicitations, review your credit report every 6 months, pay attention to your credit card transactions, do not leave your mail unattended in a public place, keep track of when statements arrive, better yet, let your statements come to your email inbox. Don’t give out personal information over the phone, and don’t list your phone number. Electronic: Install firewalls and internet anti virus software, don’t open emails from unknown senders, don’t use public computers to search your personal email accounts and bank accounts. Change your passwords periodically. At work, avoid leaving your handbag or wallet on your desk or unsecured, sensitive documents like bank and pay stubs should not be placed in plain view for all to see. Above all, do not send your social security number over email.

Be safe, and see you in my next post.

Nalini S Mahadevan, JD, MBA

Attorney at Law

www.lawyersyoucantalkto.com

Copyright 2010.  All rights reserved.

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