Protecting Your Assets: Tax and Financial Issues

  • Credits: 17
  • Format: Self-Study eBook
  • Field of Study: Federal Tax Law
  • Author/Speaker: Danny Santucci, CPA
Course ID: Advanced Preparation: Experience Level:
EWTFM-T-01789-21-S | 6233-CE-0509 None Overview
Published Date: Program Prerequisites: Other Course Formats:
© April 2021 General Understanding of Taxes Self-Study eBook
COURSE DESCRIPTION

This informative course covers traditional planning tools and their utilization to protect assets. The Uniform Fraudulent Conveyance Act, the Bankruptcy Code, and various aspects of the tax law are highlighted in describing asset protection aspects of corporations, partnerships, limited liability companies, family partnerships, trusts, retirement plans, insurance products, and other conventional tools. Special topics include protection against lawsuits, costs of long-term illness, divorce settlements, foreign asset protection trusts, statutory protections, homestead provisions, exempt assets, cancellation of indebtedness taxation, and marital agreements.

Learning Objectives:

After reading the course material, you will be able to:

  • Specify the goals and purposes of asset protection, the objections some people have about shielding assets from creditors, and reasons for asset protection.
  • Identify situations that can unexpectedly put assets and financial security at stake and the common sources of lawsuits.
  • Recognize the author's concept of exploding and imploding liability how dealing with them is necessary for a complete asset protection plan, and the concepts of insurance, asset placement, and statutory protections when applied to asset protection.
  • Specify the types of creditors associated with asset protection and fraudulent transfers recognizing their salient characteristics.
  • Identify the fraudulent transfer provisions which protect current and future creditors, the badges of fraud in the Uniform Fraudulent Transfer Act, applicable statutes of limitation, potential criminal penalties associated with fraudulent transfers, and the differences between fraudulent asset transfers and permissible asset transfers.
  • Determine net worth using a balance sheet, identify asset values, and show the preparation of a balance sheet in the context of determining the depth and scope of suitable asset protection planning.
  • Identify characteristics of homeowners, automobile, and disability insurance and what asset protection they may offer.
  • Specify persons in which rights are placed by life insurance and reasons to purchase life insurance and the benefits, uses, and types of life insurance, identify variables that influence when life insurance is taxable for federal estate tax purposes and cite reasons for establishing an irrevocable life insurance trust to achieve several estate tax planning advantages.
  • Determine what constitutes an annuity and the types and characteristics of annuities specifying their tax advantages and disadvantages.
  • Identify entity purchase and cross-purchase agreements recognizing tax and legal advantages and pitfalls.
  • Recognize ways to hold property, what taxpayers must do before beginning an asset protection program, and the advantages and disadvantages of holding property individually and through a sole proprietorship specifying how these pitfalls can be avoided.
  • Identify guidelines that corporate business owners should follow to protect their corporations, issues regarding potential personal liability for shareholders, officers, and directors, protection ideas for corporate business owners, and Section 469 passive loss restriction considerations.
  • Specify the advantages and disadvantages of using a corporation in asset protection planning, the differences among categories of C Corporations, recognize the importance of S corporations and their estate tax planning advantages, and determine the advantages and disadvantages of transferring farmland to a corporation.
  • Identify testamentary trusts, living trusts recognizing subcategories of trusts, and changes necessary when used for asset protection.
  • Determine how different trusts are taxed concerning income tax, estate tax, and gift tax, identify the grantor trust rules and the effect of the treatment on owners for income tax purposes, and specify the tax consequences of several trust types.
  • Recognize the various types of co-tenancy and their impact on asset protection and tax liability.
  • Identify partnerships and their types, ways that partnerships may be better than corporations from an estate-planning viewpoint, how partnerships are taxed, how estate freezing works to minimize death taxes, and the structuring of family partnerships.
  • Specify the advantages and disadvantages of a limited liability company (LLC), problems associated with its newness, and how professional firms, joint ventures, and families can benefit from establishing LLCs.
  • Recognize how retirement plans can be used to provide substantial lifetime benefits to a business owner and employees while simultaneously providing asset protection.
  • Identify important characteristics of custodianship and estates as asset protection tools.
  • Determine how the 2005 Bankruptcy Act changed procedures, qualifications, and tax law, and identify the most common bankruptcy types recognizing their influence on how an individual or business “goes bankrupt”.
  • Specify the rules for automatic stay and levy and their impact on “freezing” creditor activity, tax assessment, and collection.
  • Identify the differences between preferential and non-referential payments specifying the priority of creditor claims.
  • Recognize when debt is discharged under various bankruptcy types and how to establish an individual bankruptcy estate determining its taxable income and filing requirements, and identify the special rules that apply to individual debtors, partnership bankruptcies, and corporate bankruptcies.
  • Specify debts covered under homesteading, and determine permissible garnishment amounts recognizing special garnishment rules.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
  • Enrolled Agents (EAs)
  • Tax Return Preparers (TRPs)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s:
NASBA
IRS
CTEC