How can a large bank account be protectively titled?
Posted on Jun 12, 2017 3:25am PDT
Large bank accounts, in our view, should be titled to a limited partnership
– and preferably in an account in another state. We protect more
substantial accounts (usually over $500,000) in international trusts or
international LLCs. Or larger accounts can be titled to limited partnerships,
which in turn would be owned by an international trust. In some states,
spouses – with some level of safety – can title their accounts
as tenants-by-the-entirety. There are other options to protect cash accounts
from creditors. For example, you may ‘sprinkle’ gifts. This
will also reduce your estate taxes. Or you may pay down loans against
exempt assets – such as mortgages against a fully homesteaded home.
But there are other options. One may, for example, buy exempt assets,
pay preferred creditors or non-dischargeable debts (student loans, fines
or taxes), or prepay future expenses. There are many ways to rapidly and
legally deplete bank accounts in the face of a lawsuit.