Combat Fear With Financial Planning

Fear without direction is a scary thing. We’ve all had our lives upended in the past month, both personally and professionally, in the face of the global Coronavirus pandemic and it’s left many of us feeling a lot of fear about the future. What we’re missing is a plan, though. With a plan to guide our moves, fear and panic can begin to subside as steps are being taken to move past this and make our families safe again.

Though we have little control of the plan, or lack thereof, at the national level, we can do something to alleviate our fears at a personal level. The threat of COVID-19 has challenged my core belief that “Everything Happens For Me, Not To Me.” I used to see opportunity in chaos but now I am focused on how I can protect my family, support my business and serve my neighbors and community so we can all leave this stronger than when it started.

So I made a list of the things I can control:

A great place to start is to build yourself a budget.

No one likes creating a budget, it’s about as fun as nails on a chalkboard, but controlling your expenses is a key aspect to keeping yourself afloat during trying financial times. Being aware of all of your expenses, the timing of them versus when your paychecks come through and your overall cash flow can help you make smarter choices and increase your savings or investments over time.

It may seem daunting, but you can create your budget with just three simple steps:

Step One: Collect and organize all of your credit card statements, bank statements and income sources.

Most of us just finished doing our taxes, so much of this will be easy to gather. How you organize is up to you and what works best for you. For me, it’s compiling a spreadsheet. For you, it may be spreading everything out on your kitchen table with paper and pen at the ready. What’s important is that you’re getting a complete picture of what comes in and goes out each month. If you’re tech-adept, there are a number of free or cheap online budgeting tools like Mint or Personal Capital.

Step Two: Now that you have a clear picture of your monthly expenses and income, decide how tight or loose your budget needs to be.

If you anticipate an upcoming loss of income or change in financial circumstances like having a kid or relocating your family, or if your family is just saving for an upcoming vacation or big purchase, this is when you start going through your monthly expenses and decide which ones can be eliminated.

Step Three: Ask for help.

There are affordable personal finance coaches for nearly every situation, whether you’re looking to get out from under debt or plan for the future. If you’re planning for your business, a cash flow coach can provide guidance in your futures planning. There should be no shame in asking someone with more experience to share their expertise—take advantage of the vast wealth of knowledge resources available to you and plan for a secure financial future for yourself and your business!

The most valuable thing to do right now is to take action and make a plan. Channel that fear into productivity where you’re able and be proactive about your financial future. Stay at home right now, spend some time planning and emerge from this pandemic ready for what comes next.

Estate Planning: Eligibility, Rules & Regulations

One interesting thing about the asset protection field is how many areas of law overlap. To run an effective practice, asset protection attorneys have to have a thorough understanding of business law, tax law, real estate, and yes, estate planning.

Sometimes, clients are confused as to why our firm, which serves primarily real estate investors and focuses on lawsuit prevention, would would have so much info about estate planning. Well, that’s because our experience has shown us that estate planning is part of your asset protection plan. Our job is to defend assets, which can outlive you. So of course you need to have a plan for what to do with them.

Many of the other structures we use to defend your assets (such as LLCs or other entities, investment vehicles, and certain types of retirement accounts) have many rules, regulations, and restrictions about who is eligible to use them and how. Most legal structures do. So it’s only natural to wonder what rules apply to your estate plan.

Let’s start with the good news.

Estate Plans: Can Anyone Have One, or Are There Restrictions?

Anyone on earth can (and should) create an estate plan. We will all die eventually, and there are many clear benefits of estate planning we’ve discussed before. Estate planning allows us to prepare for this inevitability, provide for our loved ones, and direct our assets to exactly where we want them to go.

You do not need anything special to get an estate plan. You don’t even need to explain why you want one. Estate plans are universally available to everyone.

Think of estate planning like car insurance, but better. We buy insurance to protect us in case we get in an accident. Insurance and estate planning are both proactive measures you take to offset the pain of an unexpected loss (whether vehicular or of your life).

Well, you may or may not crash your car, but the odds of death are 100 percent. You wouldn’t think about driving without car insurance, knowing you may never even need it. By the same logic, you shouldn’t even think about avoiding estate planning, as the consequence of dying without one will actually be visited upon your family and loved ones. Estate planning lets you die, well, politely, while also getting to control exactly where your assets go and who will run your business.

When is the Right Time to Make an Estate Plan? 

The ideal time to make an estate plan was actually yesterday. But since our mad scientists at Royal Legal Labs have yet to crack the formula for a time machine, today’s just as good. 

All kidding aside, the sooner you can make your estate plan, the better.  Recall that estate planning is available to everyone. Which legal tools will be most appropriate will depend on your personal situation, where you live, and many other details your legal and tax professionals will need to know. 

Recall that estate planning’s connection to asset protection seems obvious to any attorney with asset protection experience. But since you have the flexibility of being able to opt for other kinds of attorneys to create your estate plan, be aware that not all lawyers understand estate planning equally well. For instance, many attorneys have a go-to estate planning strategy that is already legally sound, then tailoring the forms to clients’ individual needs.

We’ve established that emergencies can happen to anyone. Estate planning isn’t about just anticipating your inevitable death either. We use many estate planning tools to ensure your wishes are carried out if you’re ever in any kind of emergency where you’re unable to make decisions. It’s a way to protect your business and assets during life and beyond. But the estate plan can only work if you bother to make it. In our opinion, the consequences of dying without an estate plan are too high.

Aren’t Estate Plans For People Who Are Sick or Dying? 

Certainly not. At least not exclusively, and in fact, estate planning matters in life as well.  Just because we all know we will die someday doesn’t mean we know when. While we may associate estate planning with sickness or old age, assuming you don’t have to worry about estate planning until an emergency happens is foolish. 

The reality is none of us are immune from unexpected illnesses, traumas, freak accidents, or even heavy objects falling from above. Estate planning is the only way

Bottom Line: Estate Plans Should Be Custom to You

Check out our educational resources about the most effective legal tools asset for estate planning for REIs. But keep in mind that the most important thing isn’t what you use, it’s that you use the things suitable to you. Doing your own research is wonderful. We encourage you to use our free educational resources as much as you like, and read even more on top of that.  But given how important this issue is, this research should just be your starting point. Use it to form questions for the legal professionals assisting with your estate plan ... and stay away from LegalZoom and the other "out of the box" legal documents that will cause more headaches than anything else. 

When Discussing Your Estate Plan: What To Do With Your Remains

One of the major decisions you will make as a part of your estate plan is how you want your remains handled. Some approach this as a matter of disposal, others as an opportunity for preservation of their legacy. But the options are only getting more interesting if you’re willing to think outside of the box on this issue. For the sensitive readers, if frank discussion of death and the natural processes that accompany it makes you uncomfortable, maybe now would be a great time to check out this excellent estate planning article instead.

Still with us? Let’s get right into the nitty gritty details of some of the more novel approaches to memorializing human remains. If this news story seems a little too intense for you, check out one of our previous estate planning news pieces on celebrity deaths.

Human Composting: Return to the Earth and Create New Life

The idea may seem distasteful on the surface, but stick with it for a moment. Are cremation and burial any more glamorous? With exceptions for religious variation, most folks are fine with burial, an essentially wasteful process (absent other altruistic actions like organ donation, a very cool thing) that involves a return to the earth from whence we all came. But what if your body could continue to provide life as part of a greater ecosystem as a part of that process? Well, it can if you use a human composting service. 

While there are multiple specific methods for human composting, the process involves using natural and biodegradable materials to encourage the remains’ reintegration back into the earth. Some companies use funguses or mushrooms, while others may use a variety of organic materials.

Is Human Composting Legal?

Location will determine if human compositing is a possibility for your own estate planning needs. Those with a specific plan for where they would like their resting place to be would be wise to research well in advance about the legalities of the issue in the relevant jurisdiction. Some, but nowhere near all, states and even smaller units of government have regulations requiring either burial or cremation. Generally, human composting is type of service that is legal where offered. Private providers of such services should be able to advise where they can and cannot operate. This area of law may change in the coming years as more advances in estate planning technology inevitably occur.

Washington was the first brave state to spearhead formal legalization of human composting, thus allowing an industry to flourish.

Why Would I Consider Human Composting or Other Burial Alternatives?

Burial is expensive. Very expensive. Somewhere between $8,000 at the most bare bones to $20,000 on average. Cremation can be cheaper but still runs comparable to the low end of burial. A representative of a major human composting company went on the record to confirm the price of their total service as $5,500.

If you find human composting isn’t as desirable for you, consider some of the other interesting burial alternatives that more Americans are embracing in part to combat end-of-life costs. The LifeGem is yet another memorial novelty, though this type leaves loved ones with a carbon-pressed gem made from the naturally-occuring carbon in your body. The result is a gem that can be mounted on jewelry or other keepsakes. What do you think of these more physically conservative memorialization options? Odds are good that trends that minimize costs and add meaning to the grieving process will have plenty of room in the estate planning market.

Estate Planning Basics: Understanding The How & Why

While estate planning isn’t always the easiest topic to discuss, avoiding it tends to make it into a bigger, more dramatic deal than it needs to be.

If you haven’t looked into estate planning basics yet, now is a wonderful time to consider what kind of choices you want to make, as well as which responsibilities you’ll want to tie up yourself. The reality is, if you don’t plan your estate, someone you love may suffer for it.

Smart people make plans. Smart investors can't afford not to.

Why Estate Planning Is Essential

All too often investors and even ordinary entrepreneurs or W2 workers believe estate planning just isn’t something they need to worry about. They’re too young, the topic is boring, they just don’t have time ... 

Each and every single one of these excuses is wrong. If you fall in this camp, you are making a big mistake.

When you die, who calls the shots about your funeral, your real estate investments, paying your creditors, etc.? Do you even know? If not, this is the first reason you’ll want to get clear on your plan.

There are simply certain decisions you want to make with the help of your trusted attorney while you still can. Your spouse may be a wonderful life partner, but not the ideal person to be making nuanced business decisions about how to handle your investments. Even if they are, they may not exactly be in the mood if you suddenly pass.

The loved ones who shouldn’t have to make your decisions are who you’re looking out for when you learn about estate planning for real investors. Let’s get into why we’re so special, and what concerns to bring up with your professionals.

How Estate Planning for Real Estate Investors is Different

As an investor, you’ve got a few things to worry about that the average person does not. At the very least, they’ll include these basics:

There’s much more to consider, but the point is that none of the tasks are tough on their own. You’re better off sorting through them neatly now rather than letting them pile off and dumping the entire mangled mess on your family. Spare them the agony of probate court and all its trappings by crafting a real estate plan that addresses these issues sooner rather than later.

Estate Planning: The Difference Between a Portfolio and a Legacy

Here’s the quick and dirty for those of you looking for the shortest possible version. If you want to do any of these things, listen up: 

If you actually care about any single one these outcomes, a proper estate plan created by a competent estate planning attorney with real estate familiarity is the only truly smart way to go.

The Very Basics of Estate Planning for Real Estate Investors

When we’re talking strategy for real estate investors, there are two fundamental tools that are essential for planning an adequate estate that also protects assets in life. These are the pour-over will and the living trust.

You’d be wise to brush up on both for starters. The living trust is a much more effective vehicle for conveying your assets directly and tax-efficiently (or even free in certain situations) to your loved ones and other heirs than the traditional “last will and testament.” That’s movie stuff. If you want real protection, you need a living trust that contains all of your assets and a pour-over will to back it up in the event you acquire assets not yet in the trust. You can learn much more about how these tools work from our living trust explainer. 

There’s much more to estate planning than these two tools, but they are universal for most plans for investors with assets valued under $10  million. Those exceeding this limit have had good fortune, but must make additional plans to protect it. However much you end up with, remember that you can’t take it with you. Estate planning is how you control where the rewards of your life’s labor go and provide for the ones you love.

Benefits of Estate Planning: Give Your Heirs Control

Let’s do something folks don’t do much: Let's talk about the fun side of estate planning.

While it’s hardly a rip-roaring cocktail party subject, it’s important nonetheless. An improperly planned estate, or worse, no plan at all, complicates your already painful death for those who care about you. Here are some of our favorite benefits of estate planning, spelled out in a bit more detail.

Estate Planning Gives Your Heirs Control of Your Real Estate Business Forever

As a real estate investor, you know the importance of planning ahead for your business. If supporting your family or other loved ones is one of your investing career goals, as it is for many of us, then the kindest thing you can do for those heirs is get familiar with estate planning for real estate investors. 

Depending on what type of REI business you have, it’s fairly easy to make sure it outlives you. Some structures, like the Series LLC with its potentially unlimited lifespan, make this task easier. 

Estate Planning Empowers You to Create Your Legacy Now 

Even though we love to talk shop about our riches and portfolios, ultimately, most of us don’t want to be remembered for our money alone. Leaving your heirs a business with a clear secession plan can save them the stress of also attempting to define and preserve your legacy.

YOU are the best authority on you and how you’d like to be remembered. The worst thing you can do is not have an estate plan at all.  Heck, even if you don’t have family, friends, or even pets to provide for, you can simply give everything you own to charities close to your heart. If you want to establish a philanthropic legacy as well, many of the legal tools that asset protection experts like the Royal Legal Solutions team already use can help you make such donations. 

Frankly, if you’re successful enough to have this problem, well, nobody’s going to feel sorry for you. You’ve got RLS’s sympathies, though. But that’s because we know who gets your money if you don’t decide first: that honor goes to Uncle Sam and a small army of attorneys and accountants. Everyone’s favorite people!

Giving away all your assets to the IRS isn’t most people’s idea of a storybook ending. Again, even if you can’t think of who your heirs would be, you can still probably think of a few people you don’t mind whose lives may be dramatically improved by your generous forethought and support. 

A free property for a homeless man or sending your friend’s kid to college, really you can find something somewhere. The beauty of building your own legacy is you truly get to call the shots. Estate planning can ensure you’re remembered through your support of both people and causes dear to you for years beyond your passing. 

Benefits of The Living Trust/Pour-Over Will Combo

The go-to model that works for most investors with assets valued under $10 million is a combination of the pour-over will and living trust.  With these tools working together, you need not worry about all of those “Last Will”-only issues. You simply deed all of your assets to the living trust, which is a type of trust formed by an attorney that allows you to seamlessly hand off assets to your selected heirs. There’s no need for the agony of probate court. Click here to learn about the living trust.

As for the pour-over will, it’s a better choice as well than a “Last Will and Testament” alone. But a will alone is not a full estate plan. The pour-over will is superior, but needs the living trust to work properly. The pour-over will simply ensures any assets you have will go to the trust upon your passing. This can help avoid some of the sadder situations involving confusion regarding heirs and other unique estate planning situations. 

The good news is that setting up this type of plan is simple with proper professional help. Our needs during the end of life can be highly individualized. Working with a qualified estate planning attorney can help you determine what you need most.

Estate Planning: The FAQs

Estate planning is confusing enough for the average person. But as real estate investors, we have a host of unique concerns on top of the Average Joe/Jane. It’s true that estate planning may be stressful for anyone, but understanding estate planning for REIs is too important to ignore. Luckily, this article’s a stress-free way to learn about the topic.

Death sucks, but let’s just accept it and take a few minutes to get hip to the basics. We’ve even got an educational piece to help you out: “Estate Planning: The How the Why and The Basics” handy for you. Check it out if you feel lost at any point here. We’ll wait for you to re-join us.

Back or already familiar? Great. Let’s dive into our most common estate planning FAQs.

1. Don’t I Have to Be Really Rich to Need an Estate Plan? 

Definitely not. Everyone should create an estate plan for one simple reason. Dying without an estate plan is always more expensive (financially and emotionally) than creating a suitable, appropriate one.. 

Dying alone is expensive. Funerals are costly, any unpaid debts have to be handled, and of course, there’s your grieving family. They’re paying emotionally, spiritually, and with their time. If their time and money matters to you, creating an estate plan will at least give them a roadmap and fewer responsibilities. 

Estate planning is more humane on families and loved ones, as they’re typically the ones having to round up your credit cards, make sure bank accounts get closed, worry about life insurance and the hundreds of other details that accompany death. When you really think about all of these costs together, the amount of money spent on estate planning begins to look like nothing. 

2. Everyone Needs an Estate Plan, So Why Do Investors Have to Do Anything Different? 

Don’t forget that your business is an asset with the ability to literally outlive you, possibly indefinitely depending on its structure. But the reality is simple. Estate planning is how we can direct where anything that matters to us goes when we pass. If you have properties and asset protection structures like liability-limiting entities (LLCs, Series LLCs, Delaware Statutory Trusts, etc.), estate planning just becomes more important.

3. Isn’t a Last Will and Testament Good Enough for Estate Planning?

Again, not at all.  A full estate plan is not the same as a simple “Last Will and Testament.” Lord knows enough misinformation persists in popular culture about these documents. Those cinematic scenes we’ve all scene of some character hand-writing a last will, often upon deathbed or battlefield for dramatic flair are hilariously wrong. First of all, DIY estate planning is a bad idea. Tempting as it is to point out the many problems with these scenes, the most misleading aspect is that it glamorizes the will and makes people think that’s all there is to it.

Here’s the real deal: a will can be part of your estate plan. But you can’t rely on it alone. If you do, you’re likely to have to pass through this unfortunate soul-sucking spot called probate court.

5. What is Probate Court?

Probate Court’s a real drag. Basically, your heirs get to sit around and watch the riveting legal conversations that only the true dorks like us at Royal Legal like. During this process, you’ll be racking up fees for the Court, any attorneys or accountants needed, etc. It’s better to just avoid the whole mess altogether. And presumably to add insult to injury, the pros get paid out long before your heirs do, particularly if you attempt to DIY a will and miss a critical part. Sadly people do this because they see dramatic movie scenes of people penning Wills, etc. That’s a great way to get yourself a one-way ticket to Probate Court.

But you can avoid probate court with a real estate investor-tailored estate plan.

6. What Do Proper Estate Plans for Real Estate Investors Look LIke?

For real estate investors with under $10 Million in assets to defend, there are two fundamental tools that are essential for planning an adequate estate plan that also protects assets in life. These are the pour-over will and living trust. Let’s review both.

The living trust is a much more effective vehicle for conveying your assets directly and tax-efficiently (or even free, occasionally) to your loved ones and other heirs than the traditional “last will and testament.” Remember? That’s movie stuff. If you want real protection, you need a living trust that contains all of your assets and a pour-over will to back it up in the event you acquire assets not yet in the trust. Learn more from our living trust explainer. 

There’s much more to estate planning than these two tools, but they are universal for most plans for the majority of investors. Take the time you need to research. After all, estate planning is how you control where the rewards of your life’s labor go and provide for the ones you love. They’re worth it. 

Future Retirement Health Care Costs Expected To Fluctuate

One of the reasons we save for retirement is because medical costs invariably go up with age. Saving for your own eventual care, even if you’re healthy as a horse now, is wise. But recent projections suggest you may actually want to save a little more. Cost of care is expected to continue fluctuating, and after all, there’s no such thing as too much savings. Here’s what you need to know about how to prepare.

Why Your Retirement Plan Should Include Healthcare Plans

Healthcare is a substantial cost for most of us in our golden years. These costs tend to escalate across all demographics with age. The prudent investor, therefore, should be both informed and proactive.

Consider the wide variety of things you can expect to go wrong as you age. Frankly, we will all need care to some degree. If you’re very fortunate, that period may be confined to the end of your life. But if you’re like most Americans, you’ll likely experience a slower decline in general health. This is simply the price we all pay for living rich, full lives: aging gets us all regardless.

But let’s delve a little deeper into what types of circumstances can influence your personal healthcare costs. The sad reality is simply that those who manage chronic conditions or experience catastrophic events (the sort you’d associate with hefty insurance claims--accidents, sudden events like heart attacks or strokes, etc.) will face challenges on top of those that we all must. Every person reading this has good reason to save more than what seems essential for health care. That said, knowing that costs will be higher (or lower) for you can help you prepare properly and never have to worry about getting the care you need.

What Influences Healthcare Costs?

Health is deeply personal, and often frustratingly beyond our control. Here’s a shortlist of some of the things that determine these costs.

Known by the insurance world as “pre-existing conditions,” this category can cover a broad range of items. The extent and severity of a person’s health complications is the main factor that will determine costs for health insurance and routine care. Perfectly controlled conditions may even be costly to treat for populations like chronic pain patients and diabetics, who are often dependent on medications and require more frequent doctor’s visits (often with pricey specialists). Even if you’re lucky enough to be 100% able-bodied without so much as high blood pressure, congratulations. But that can change at any moment, as mere aging causes its own health issues.

Costs for women and female-identified individuals tend to be higher. One highly comprehensive 2016 study predicted a 30-year-old healthy woman can expect to pay $120,000 more for healthcare upon retirement.

None of us are safe from this one. The simple reality that $100 today won’t be the same as the day you retire is inescapable. Certain vehicles can help protect your dollars from inflation--both your CPA and attorney should be able to give personalized advice on these matters.

While none of us can make perfect predictions, it’s generally wise to estimate costs and figure in a 10-20% “buffer” for the unexpected. Just like when you’re building a pro forma for an investment. Your future care is absolutely a type of investment. Let’s look at some smart ways to plan ahead.

The Solo 401(k): The Healthcare Payment Tool You Didn’t Expect

Building up a retirement savings account sufficiently is no small feat. So it’s completely fair to use every single tool at your disposal. The thing is, most of the tools you can use aren’t going to be advertised as healthcare solutions. The Solo 401(k) is a precise example of this type of tool: underrated, under-used, and underappreciated. Well, by most. You and I are about to know better.

The Solo 401(k) isn’t really that different from your typical 401(k) account. The essential feature that makes a Solo 401(k) a viable healthcare savings vehicle is Checkbook Control. Checkbook Control is finance slang for the ability to make nontraditional investments. While most accounts are going to be confined exclusively to the offerings of the institution in question, this isn’t so with self-directed accounts.

Note: Don’t let terms confuse you too badly here. The self-directed 401(k) is the same thing as the Solo-K. You may see variations in spelling or even fancy verbiage thrown around, but it’s the same type of Qualified Retirement Plan. There are however other self-directed accounts, but they tend to be IRAs. You can learn more about the self-directed IRA LLC and the IRA-Owned Self-Directed Business Trust right here on the Royal Legal Solutions site. These vehicles may also prove to be effective choices for you, as they share many key benefits. Learning about all of your retirement options, time permitting, is always a smart idea.

The solo-K can help you beef up your retirement savings easily because it confers these benefits (among many others):

  1. Flexibility. Solo-K’s may be used alongside other traditional retirement plans.
  2. Remarkably high contribution limits.
  3. Endless opportunities for diversification of retirement dollars.
  4. Tax-deferred and Roth options.
  5. May be used as a part of your real estate business.
  6. May play a role in your asset and creditor protection plan.

Smart Retirement Planning: Your Solution to Future Uncertainty

Amidst both the expected fluctuations and life’s unexpected curveballs, the smart play is to do what you can to get the most out of your retirement savings. Of course, this begins with planning ahead. If you need some general retirement saving advice, check out this resource of tips that can help at any age. But let’s take the time to glance at some methods for saving.

5 Times in Life to Update an Estate Plan

When asked by someone without an estate plan when they should plan their estate, we tend to give a variation of the answer, “Right away.” But updating your estate plan is a little more complex. There are major life events that are critical times to update your estate plan and make any necessary adjustments.

1: You Got Married

Congratulations! But before you tie the knot, you’ll likely want to ensure your intended spouse will be a part of your estate plan. Spouses are often beneficiaries of wills and life insurance and may be listed on titles to shared investments or homes. For this reason, it is particularly important to update your plan if this isn’t your first wedding. You don’t want things going to your ex that is more appropriate for your current spouse. Even for first marriages, your spouse may not be fully protected or presumed to be an heir if the plan omits them.

2: You Had a Child

Kids, accompanied by marriage or not, really do change everything. One massive reason children can affect estate planning is because this documentation lets you dictate guardianship: who gets your children if you and the co-parent both pass away? It’s a situation nobody wants to be in, but one to plan for. Otherwise, the judgment call could be left up to the state. States also have different laws about whether “natural children” are heirs. Keeping your plan current is critical if you want to retain control.

Your children turning 18 also matters. As adults, they can directly inherit assets, and your plan should evolve accordingly.

3: You Got Divorced or Were Widowed

Removing an ex from estate planning documents is one of many legal considerations during a divorce. All changes in marital status, including a spouse’s death, should at least be cause for reviewing if not amending your estate plan. The detail to focus on is where a former spouse may be a beneficiary, and skilled estate planning attorneys can also inform you of other concerns for your unique situation.

4: You Bought or Sold a Home or Other Major Asset

This includes investment properties and is one major reason why estate planning for real estate investors is approached differently. Those with investment properties may consider the living trust and pour-over will, which an attorney can craft to ensure the seamless transition of assets without the need for probate court. A new home of any kind can drive up your estate’s value, but fortunately, asset protection strategies including titling property to a land trust may help prevent this and other potential legal issues surrounding titling.

5: You Got a New Business

Whether you started or purchased the business, understand it’s also an asset. You’ll need to decide who owns the business, and a succession plan is wise for particularly successful and profitable businesses. If you want to make decisions around your legacy without incurring unnecessary probate court fees, updating your estate plan is vital.

When Was The Last Time You Updated Your Living Trust?

For those of you who already have living trusts, congratulations—you are certainly on the right track when it comes to estate planning.  But how do you know when to update your living trust?

By the way, if you don’t have one yet, this article is worth a read ...

What is a Living Trust For?

As a real estate investor, you may have many properties that you will pass on to your heirs. The living trust can help you ensure a seamless transition upon your passing.  A living trust is an estate planning tool. It may be helpful to think of the revocable living trust as a large lockbox that holds your assets. The trust’s “job” is to hold title for the properties. Estate planning attorneys use living trusts as a way to avoid probate court.

When a living trust is created, a trustee will be named to control the assets for you. You can think of your trustee as the person who has the key to your “lockbox.”  Your role is simply to be the beneficiary of your trust. You may direct your trustee to buy, sell, or transfer assets into or out of the trust.

How a Living Trust Compares With a Will

The will may be the most widely recognized estate planning tool, but a living trust is far superior to a will alone. Wills would have to go through probate court, which means your grieving loved ones would be navigating a maze of red tape before receiving anything from the estate.

The living trust allows for the control of the assets to immediately pass to the designated heir, as opposed to getting caught up in probate court by passing through an ordinary will. With this method, you can breathe easy knowing that mortgage payments are made, rents are collected, insurance premiums are paid, etc. 

The living trust ensures that your property is not lost or diminished in value, which are both highly likely occurrences if the properties are caught in probate court. It has the added benefit of keeping the value of the home out of the taxable portion of your estate.

Living trusts are easier to modify than wills, but harder to challenge legally. Trusts are also private, meaning using a living trust would remove your name from the public record. You would no longer own the property but retain control as the beneficiary of the trust.

Interested in learning more? Check out our article,Living Trust or Last Will and Testament: Which is Better for Real Estate Investors?

The Ideal Solution: Living Trust and Pour-Over Will

For real estate investors who may be buying and selling assets frequently, it is important to know that you would normally update your estate plan each time you make a significant purchase or sale. This could present a challenge for an active investor with many properties, but that problem can be easily addressed by simply using a pour-over will. The pour-over will passes all property you own into your living trust upon your death.

For the real estate investor, a pour-will pairs well with the living trust to ensure a smooth, private transition of your assets. Using these tools together is a smart move.

Estate Planning is Part of Your Asset Protection Plan

Estate planning is a critical part of your asset protection plan. When you plan your estate, you’re empowering yourself to take control of your legacy. 

Living Trust Versus A Will: What’s the Benefits For REI?

Many investors don’t even know how crucial it is to have an estate plan. While planning for the unexpected is uncomfortable at times, it is essential for all of us. Yet the real estate investor has even more reason to be vigilant about estate planning. Whether you own a single investment property or an impressive and costly portfolio, surely you want your real estate assets to be passed onto your loved ones and chosen heirs.

Today we will focus on some common FAQs about two of the most well-known estate planning documents: wills and living trusts. Read on to learn about what these legal documents have in common, what they do differently, and what these tools really look like in action.

If you don’t pick out your heirs, the U.S. government is all too happy to hang on to your hard-earned assets and find a use of their choosing for your valuables. Even investors with no family can likely think of a cause closer to their heart than Uncle Sam. Still, brilliant people with legal access die without estate plans often. Why? We have a pretty good working theory.

Death isn’t fun to acknowledge or look at, let alone admit will happen to us. But we can’t change its inevitability. That part is beyond our control. So, we turn our focus to what we can control. What we can do is take control of our legacy today and ensure our desires will be carried out no matter what.

The benefits of estate planning include giving you power now, while you are alive. Planning gives you the peace of mind of knowing that even if misfortune strikes, your business will live on and your chosen heirs will be taken care of. It takes some of the fear, and the sense of “forever,” out of death. 

The Basics: Wills Vs. Trusts

Let’s start at the very beginning. For our purposes, that means making sure we are clear on what these estate planning tools are and what they do.

Breaking Down Wills

There are many different types of wills. We raise the issue to make the point that when most people think of a will, they are usually referring to the most common and easiest type of will for the average person to draft, a variation on the Simple Will.  The requirements for and components of these wills are straightforward:

Wills aren’t bad, but they can cause problems when relied upon alone. These criteria may seem basic, but every single one can go awry. Even the first can be challenged after your death. So, let’s look at the living trust to see what it has to offer.

Breaking Down Living Trusts

Living trusts are established by private trust agreements. This type of revocable trust is one you can form today, but deed property titles into for years to come. In this sense, it’s also an asset protection tool. Living trusts also allow you to name a trusted confidant to manage your real estate assets if you ever can’t while alive, say because of a medical emergency. Perhaps most importantly, because this tool avoids probate, your heirs will receive their share far faster with no surprise fees.

Similarities Between the Will and Living Trust

Essentially, each of these options gives you a legal way to direct where specific assets go upon passing. Both also allow for the possibility of naming a guardian for minor children. A will has this option, while a living trust would need to be set up properly (in conjunction with a pour-over will) to achieve this goal.

The similarities end there, however. Let’s take a look at the crucial differences between these tools before exploring which option is best for the real estate investor.

Differences Between the Will and Living Trust

There are many crucial distinctions between the living trust and the will. The differences touch on everything from legal and business differences to the costs you can expect to pay for your estate plan.

Wills must be probated, while living trusts bypass this process. The living trust offers greater anonymity for real estate investors, even after their passing. Your heirs will also benefit from this privacy. Probate court records are public, while trust filings are private. The probate court would never be involved in handling matters pertaining to your trust. Where a will names an executor, a living trust names a successor trustee. While both are involved in administering the estate, your trustee’s actions aren’t in the probate court’s purview.

Wills may be cheaper upfront, but you get what you pay for. The money you “save” could lead to more costly heartache for your heirs, particularly if you truly cheap out and write it yourself. Resist that urge. True, living trusts are more expensive to establish, but you’ll be far more protected. They can’t be contested or held up in probate court for months, even years--a fate all too normal for those who die with only a “Last Will and Testament.”  Your heirs won’t have to worry about paying out lawyers and accountants or fighting for their fair share if your living trust leaves no room for ambiguity. This is just one more reason to get professional help for your estate plan.

Which Tool is Best for the Real Estate Investor?

Because of the additional benefits conferred by the living trust, we often recommend that our real estate investor clients use this tool instead of a traditional will alone. While we’ve hit on the basic features, an example may help illustrate the differences in real life.

Example: Meet The Identical Twins With Different Estate Plans

Amy and Caroline are 36-year-old identical twin real estate investors. The twins got started investing together, even splitting profits and losses. They grew their businesses, yet happened to always have the same number of assets, each with the same value.

But Amy and Caroline didn’t do everything exactly the same. Although their financial conditions and portfolios were dead ringers just like the sisters, the women disagreed about how to handle estate planning. The two made their appointments to address the issue the same day. Each sister had five chosen beneficiaries, but neither included the other.

Amy read online that the will is the oldest and most accepted document available, and partially to save money, she used a consultation with a lawyer to draft a will. She spent some time googling a cheap attorney, and found one who agreed to create a document that listed her existing assets. The price was right and she felt secure. “I’m young,” Amy reasoned: “I’ll update it later.”

Caroline, however, is more cautious. She spent more time researching her options and learned about living trusts and estate planning for real estate investors. She spent some time looking for references for an estate planning attorney with real estate experience, narrowed down her candidates, and opted for an attorney who was also an investor. This lawyer spent some time with Caroline looking at her full situation and providing thoughtful feedback. He agreed to form her living trust and advised that she use a pour-over will, a tool which ensured all of her assets would be added to the living trust. She spent more upfront than her sister, but also would not need to come back to update a will (and pay the necessary legal fees) like her sister would. Caroline also took advantage of the lawyer’s estate planning review services, which meant her lawyer ensured compliance and made suggestions twice annually.

What Happens if Tragedy Strikes?

Now let’s see what would happen for our sisters if they were to pass away suddenly. No actual twins were harmed in the making of this example.

Five years after drafting her will, Amy has essentially forgotten about the document. During those years she got married, had two children, acquired three new investment properties, and got busy with life. She is driving to work on an uneventful morning. Out of nowhere, her small sedan is T-boned by an 18-wheeler. She passes away immediately upon impact. Amy’s five-year-old will is her only estate planning document.

First, her will would have to be probated no matter what. Things get darker, though. She listed beneficiaries before her marriage and kids existed, and while there are legal ways to sort these things out, they are expensive and time-consuming processes for her already-grieving family to handle. Further, not all of her assets are accounted for in that will. The investments she had purchased since weren’t listed because the will wasn’t updated, creating yet another issue for the court. Sorting out these details usually means legal and accounting fees are deducted from the estate while the heirs, both listed and presumed, wait. Sometimes they fight. Amy’s family would be in a much better position if she had followed her sister’s lead.

Suppose Caroline also started a family and grew her portfolio in the five years since making her plan. Now let’s suppose she’s fatally struck by lightning. Her heirs won’t be attending probate court like Amy’s, because she used the power combination of a pour-over will, living trust, and closely involved attorney. Her family was included in her trust agreement, and even though her last investment hadn’t been formally listed in her documents before she passed on, the pour-over will ensure all assets went into her living trust for distribution.

You Can Have it All: Using a Pour-Over Will With a Living Trust

While a living trust clearly beats a will alone, the pour-over will combined with a living trust is the gold standard for the vast majority of our clients. The pour-over will is superior to the simpler will solution mentioned above because it accounts for all assets you control at the time of your death. Any you hadn’t added are “poured” into your living trust, offering a smooth business transition option that also takes care of your heirs.

 

To learn more, check out our article, What Is The Difference Between A Will And A Trust?

 

Three Ways to Properly Legally Protect Your Personal Residence

We talk all the time here on the Royal Legal Solutions blog about the importance of legally protecting your real estate investments.

Far less online material is devoted to the asset protection of personal residences. Those investors who are newer to asset protection may be wondering what, if anything, we can do for our homes.

I can hear some of the more seasoned investors shouting at their computers now: “But there’s the homestead exemption!” Great point. The reality is that your homestead exemption is only as good as the state you live in, meaning it’s not universally useful. It is also only one of the top four tools that you can use to defend your personal property.

Apply for a Home Equity Line of Credit (HELOC)

The HELOC is a relatively easy-to-obtain loan that is secured by the equity in your home. In other words, it’s a harmless type of debt. The application and qualification process is straightforward. Using a HELOC  is a tried-and-true tactic for making a residential asset unappealing to pursue in a lawsuit. Creditors, too, will often back off when they see the home’s equity is securing a debt. Fortunately for you, the property looks less attractive to creditors the moment any type of debt is associated with it.

Use a Qualified Personal Residence Trust

These estate planning tools are a lesser-known type of trust originally designed to minimize gift and estate taxes, though they also offer certain protections. The Qualified Personal Residence Trust works through provisions allowing an investor to continue occupying the home for a specified period of time, after which the residence will become the property of his or her heirs. This method has the added benefit of keeping the value of the home out of the taxable portion of your estate.

Get The Most Out of Your Homestead Exemption

Just because homestead exemptions are not all created equally does not mean they are worthless. There is no reason that you shouldn’t do what you can to maximize your homestead exemption. If you aren’t sure where to begin, consider checking with a qualified CPA that has real estate knowledge. That CPA may be aware of deductions and have other ideas for minimizing your taxes as well.

Concerned About Personal or Business Assets? Royal Legal Solutions Can Help

If you have concerns about protecting your personal or business assets from lawsuits, know that you don’t have to. The asset protection pros at Royal Legal Solutions are here to help you figure out the best plans for your needs, as we have for so many other investors around the country. Take a step towards more security by scheduling your personalized consultation now.

Getting Remarried? It’s Time to Update Your Personal Estate Plan

If you’re recently engaged, let us first say congratulations. Remarrying can be an exciting time in life, full of promise for new love. But it is also one of those major life events that can affect your estate plan. Be sure you have your bases covered by following the estate planning tips below.

1. Update Wills and Beneficiaries

Getting remarried often means blending your family. If you have new step children that you wish to include among your heirs, your legal documents should be updated to reflect this. See our article, A Guide to Estate Planning for Blended Families, for more.

If you don’t have a will, get an attorney’s help drafting one now. If you die without one, it’s up to the state to distribute your assets--and tax them--however they see fit. We recommend the use of a pour-over will for real estate investors. This type of will acts in conjunction with a living trust, which we will discuss more below.

2. Maintain a Complete and Current List of Assets

Real estate investors buy and sell major assets more often than the average person. Your estate plan must be updated each time you take either action. But real estate isn’t the only asset that will have value. Include anything with substantial financial value, such as a bank account, as well as items with great emotional value like family heirlooms on your list of assets.

3. Don’t Forget About Power of Attorney

Medical power of attorney dictates who makes medical decisions for you if you are ever unable to. If you do not have this document, or have not updated it since your previous marriage, now is the time to act. Whether you want your new spouse, a child, or another trusted loved one to make medical decisions for you, be sure your power of attorney documents reflect your choice--and that the responsible party knows your wishes in case you are ever incapacitated.

4. Know the Power of the Living Trust for Real Estate Investors

A living trust lets you organize your assets and control how they are distributed. Property may be titled directly to the trust when you acquire a new asset, which is one reason these privately-filed documents avoid probate court. If you have properties scattered across several states, a living trust spares your heirs from the experience of having to probate in each state. Instead, the assets will go directly to the person of your choosing, which also helps lower legal costs.

5. Always Get Help From An Estate Planning Attorney

The estate planning lawyers at Royal Legal Solutions know the importance of proper estate planning for real estate investors. Since we are investors ourselves, and so are the rest of our clients, we know the details that will matter for you and your family. We will also fiercely advocate for your wishes and help you maintain control of your legacy. With proper planning, your real estate business can outlive you. So don’t delay. Schedule your estate planning consultation today.

What George Bush's Recent Death Reminds Us About Estate Planning

George H.W. Bush passed away on November 30, 2018 at the age of 94, making him the longest living President in United States History. His death came a mere eight months after the passing of his wife, Barbara Bush. While his storied life has already shaped the former President’s legacy, his death also reminds the rest of us about simple to overlook yet important aspects of estate planning.

Spouses Dying in Quick Succession Can Create Estate Planning Issues

Cases like the Bush’s, where both spouses die in a narrow window of time, can create issues. Generally, a spouse is the beneficiary of a life insurance policy or retirement plan, and often also an heir. If there is no estate plan, both estates will end up in Probate Court--where questions of how assets will pass, to whom, and in what order can take months or even years to hammer out. In blended family situations where one spouse may have children unrelated to the other’s, things can get especially sticky.

Even where there are no family complications and there is an estate plan in place, wills and trusts may have survivorship requirements. Ask your attorney about this issue when creating your estate plan. Retirement accounts may also be complicated when two spouses die within a short time period. If the surviving spouse does not roll the retirement funds into their account as soon as possible, contingent beneficiaries like children may not receive the benefits.

The Importance of Planning Your Estate Ahead of Time

Now, we do not know or claim to know the details of the former President’s estate plan, though we can speculate he likely did have one. His death can serve as a reminder of the importance of creating and maintaining an up-to-date estate plan.

Real estate investors in particular have specific issues to worry about when it comes to their legacy. Not only do we want to provide for our heirs, but we must also decide who will inherit our real estate businesses. We can’t afford to be lazy on estate planning details. For instance, did you know that you must update your estate plan every time you acquire a new asset? Major life events such as marriage or the death of a beneficiary also call for updates. Fortunately, with professional help, you can stay on top of your estate plan and be certain your legacy is carried out as planned. At Royal Legal Solutions, we offer estate planning services and monthly package options that include regular estate planning updates to help busy investors maintain current plans.

Don’t Try This At Home: Get Help Planning Your Estate From the Professionals

If you’re tempted to put off estate planning, don’t. Make your plans now to ensure your wishes are carried out and that your loved ones are provided for as you see fit. The experts at Royal Legal Solutions are sensitive to the estate planning needs of real estate investors. If you have questions about our estate planning services, contact Royal Legal Solutions or schedule your estate planning consultation today.

Three Quick Estate Planning Tips to Avoid Later Problems

Approximately half of Americans fail to make an estate plan, which can be a major mistake. Real estate investors have even more to lose without thoughtful estate planning. So what are some of the tools that we use for an effective estate plan? What can you do today to make life easier for your heirs once you are gone?

Read on to learn about three tips that you can use now.

Get Your Estate Planning Paperwork in Order

This first tip pertains mostly to individuals who have already established an estate plan, or are using legal structures to protect real estate. You want to make sure all of your documents--deeds, trusts, and life insurance--match up with your estate plan. If you designated one person as the beneficiary of a land trust, for instance, naming another person in your estate planning documents will not "cancel" the original beneficiary designation. Taking the time to line up all of your legal documents with your wishes now will help ensure that they are carried out. Similarly, you want to keep your estate plan updated. Any time you buy or sell a major asset, you should update your estate plan.

Stay Out of Probate Court

Probate Court can be a miserable, emotionally experience for everyone involved. The good news is that you can spare your family from ever having to handle probate with a single document: a revocable living trust. Some people believe a will alone is sufficient, but this is a myth. A will must go through probate court. To make things easier on your grieving family, set up a living trust. You may specify in this document which assets go to whom. Some investors use this in conjunction with a "pour-over will" to easily transfer ownership of a business.

Use Trusts Strategically in Your Estate Plan

Trusts are a critical part of estate planning, particularly if you have children or other under-age benefeciaries. A trust allows you to designate funds for a particular individual. As an added bonus, when assets are transferred to heirs over the age of 18, the heir receives the benefits of asset protection and creditor protection. Such benefits are not available to heirs receiving assets in a Probate Court context.

Bottom Line: Get Professional Estate Planning Help and Use All of Your Tools

If the discussions about the finer points of Probate Court and the different types of trusts make your head spin, that's okay. That's where attorneys come in. When planning your estate, you will always want the guidance of an experienced lawyer familiar with these issues and more. If you have many assets or a high net worth, getting professional help is even more important.

 

Charitable Gift Options Using a Self-Directed 401(k)

Charitable contributions are a popular strategy among the wealthy for lowering tax payments. But this method isn't exclusively for the Michael Dells and Kim Kardashians of the world. Investors from all income levels, including you, can use it too. But even savvy investors don't always know that charitable gifts can be made from retirement accounts. So whether you simply want to donate money from your 401(k) to a cause close to your heart, save on your taxes, or both, this article is for you. Read on to learn more about your options for giving charitable gifts with your Self-Directed 401(k).

Why You Should Consider Giving Your Retirement Funds to Charity

The funds in IRAs and 401ks are among the most heavily taxed that the average investor will hold, and redirecting them towards charity can make a meaningful difference. Charitable donations help you save money by reducing your taxable income. This is why many highly wealthy individuals give in large quantities. Sure, many of them are philanthropic at heart, but there is also a distinct tax advantage to donating. The higher your taxable income, the greater your tax responsibilities when Uncle Sam comes around to collect his bills.
Giving to charity also qualifies you to receive a Charitable Gift Tax Credit. Literally anyone can take advantage of this. Generally, the credit is computed by taking the market value of an item or actual amount of cash donated, then subtracting the percentage of your tax bracket.
Strategic donations can lead to thousands returning to your pocket. Of course, there are limits: you cannot donate more than half of your income in a given year. Similarly, for these benefits to apply, you must itemize each donation.

What Options You Have For Giving to Charity

You're likely already familiar with some types of donations. Others are less obvious. Here are some, but not all, of the many methods you can use to your taxable income to a charitable cause:

Which Options Are The Most Beneficial?

While any of these options is certainly beneficial and altruistic to the receiving organization, smart investors may be wondering which will benefit their own bottom lines. You may be surprised to learn that retirement and life insurance donations are among both your strongest and lesser-known gift choices.
Many potential donors do not know much about life insurance or retirement plan asset gifts simply because charities are less likely to request them. Many nonprofit organizations have a need for immediate cash that is simply not addressed with these types of donations. They are nonetheless useful for the charities--and you.

Ways to Give To Charity From Your 401(k)

Below, we'll describe the two simplest options for donating to causes you care about with your 401(k) funds.

Option 1: Donate Directly From the Plan

You can liquidate an asset (or several) held by your plan, then directly donate the funds to the nonprofit group or cause of your choosing.

Option 2: Name a Charity as a Beneficiary of Your Plan

Naming the charity of your choosing as a beneficiary works the same way as designating any other beneficiary. However, this option has the added advantage of allowing plan funds to pass through to the charitable organization completely tax-free. If you have tax-deferred funds, this is actually the smarter expense than passing those same funds on to your heirs. Your heirs would have to pay the taxes, but the charity does not. Though this may not directly benefit you as much, it is certainly the most efficient use of money that would otherwise be gifted to the U.S. Government. That you can control the funds by selecting any qualifying charity means you have the luxury of supporting a cause you truly believe in.
 

Beneficiary Mistakes — Self-Directed 401(k) or IRA

Designating a proper beneficiary is essential for retirement account holders to guarantee their interests will be served. Whether you're using a Self-Directed IRA or 401(k), you want to ensure that you are doing the most you can for the appropriate beneficiary. Other investors have made critical errors in judgment on this subject, but you can fortunately learn from their mistakes. Today, we are going to talk about major mistakes investors make regarding their Self-Directed 401(k) or IRA's beneficiary, and how to avoid making them yourself.

Mistake #1: Naming Your Child as Your Beneficiary

Most people immediately want to name their child as a beneficiary. This is only natural, but if your child happens to be a minor, things can get extremely complicated. Run this scenario through your head: if you're hit by a bus tomorrow, will your 8-year-old know what to do regarding your retirement account? Do most 8-year-olds even know what an IRA or 401(k) is, let alone how to responsibly direct one?
Even if your little angel is a MENSA-qualified financial prodigy, it is nearly impossible that a court would allow your tiny genius to directly receive your plan's benefits.
Some investors believe they can avoid this issue by simply designating their child as a secondary beneficiary, with their spouse as the primary. But if something should happen to both you and your spouse, you're still going to run into the problems above. Fortunately, there is a simple solution for these situations: appoint a guardian to represent your minor child's interests in your plan. Note that you'll want to do this yourself. If you don't, the judgment call will be up to the court. Make the choice while you can so you know your child will be protected by a person you trust.

Mistake #2: Bungling The Beneficiary Form

There are several ways your beneficiary designation form can actually sabotage the person it is intended to help. The most obvious of these is lacking one altogether. But let's assume you did everything correctly when filling out and filing the form. Don't skip this next critical step: let your beneficiary (and ideally your attorney) know where it is.

If you don't, you're adding even more troubles to your already grieving loved ones. We recommend that you not only provide copies of your form to all interested parties, but that you also keep an additional copy in a home safe or safety deposit box. Anyone who needs the form, from your professionals to your heirs, should be notified ahead of time of the copy's secure location.

Solution: Help Your Beneficiary Efficiently in Other Ways

Of course, when you name a beneficiary, you are hoping that he or she will actually benefit from your account and its investments. While they likely will, we have found that there are limits on how much a Self-Directed IRA or 401(k) can actually do for your chosen party. To be precise, there's one big limit: Uncle Sam.
Uncle Sam likes his money. He will always get it. And getting it from your retirement account upon your passing is child's play for Uncle Sam. Every dime that goes to him is essentially coming out of your beneficiary's pocket. That brings us to one of the most common-sense ways to look after your loved ones: life insurance.
Life insurance is an incredibly valuable tool, particularly if you have children. Yes, you will pay premiums for the policy, and they may be expensive. But in the event of your death, the benefits will pass directly to your heirs without the Taxman getting in the way.
 

A Land Trust Vs. a Living Trust

End-of-life matters are not always easy to think or talk about. However, making plans now, while you are healthy enough to do so, can save your loved ones time, money, and heartache.

The last thing anyone wants to do is lose a loved one and then be immediately buried in legal matters regarding their possession, estate, and finances. If you have been considering end-of-life plans, you may have heard the terms “living trust” or “land trust”. These trusts help ensure your loved ones get the assets or properties you want, while bypassing the complex, often expensive, legal process known as probate. To learn more about these trusts, keep reading.

Understanding The Living Trust

A living trust is one that is created during your lifetime. (As the living trust owner, you are known as the trust settlor or grantor.) A designated trustee manages these living trusts. This trustee holds legal possession of any assets or property that are included in the trust. A trustee has the duty to manage the trust in accordance with the best interests of the beneficiary (or beneficiaries). The trust settlor, or grantor, designates the trustee. Upon the grantor's death, the assets and properties will flow to the beneficiary without having to go through the court system. (This is different from a will, which will need to go through court before it can be distributed to your loved ones.) A living trust can be “irrevocable” or “revocable”.

What Is A Revocable Trust?

With a revocable trust, the granter can appoint himself or herself as the trustee. This allows them to take control of the assets contained in the trust. By doing this, the assets within the trust remain a part of the grantor's estate. This means that, if the value of the estate taxes exceeds that of the estate tax exemption at the time of death, taxes may be owed. In a revocable trust, the granter, acting as the trustee, can amend the trust and the rules at any time. They can freely change beneficiaries at any time. They can also undo the trust at any point as well.

What Is An Irrevocable Trust?

By comparison, in an irrevocable trust, the grantor is not the trustee. Because of this, they end up relinquishing some of the control over their living trust. When a trustee is designated for an irrevocable trust, they become the legal owner of the assets or property within the trust. (This reduces the taxable estate for the granter.) With an irrevocable trust, the named beneficiaries are hard to change.

Understanding The Land Trust

A land trust is a type of living trust. However, unlike a living trust, which holds any type of asset, a land trust can only hold real estate or related assets. This means a land trust can hold physical properties, notes, mortgages, air rights, and other real estate related assets. With a land trust, the property owner is the beneficiary. Because of this, they are able to direct the management of the property. (The trust agreement or deed would dictate the level of control a beneficiary has.) The property owner is also able to retain all rights in regards to the property. This includes the right to freely develop, rent or sell the property contained in the land trust. Land trusts are typically considered to be revocable trusts. As such, they can be amended or terminated at any time.

Benefits of a Land Trust

There are plenty of benefits when you create a land trust.  Perhaps the biggest benefit, however, is the ability to hold property anonymously.

How is this possible? The property contained within a land trust is listed as the name of the trust in public records. This helps to hide your full net worth from the public eye. As a result, it can decrease the potential for lawsuits and help with property negotiations.

Whether you personally own it, or your Series Limited Liability Company (LLC) does, a land trust inherently protects your property investments. In addition to this, as a type of living will, a land trust avoids probate court. This means you do not have to go through court in order to manage, rent or sell the property contained within the land trust. (This is because the property contained in the land trust are considered personal property. This is similar to the idea of owning corporation stock.)

Get the Most Out of Your Living Or Land Trust Agreement

It is important that your trust agreement should give you the rights you expect, without hidden clauses. When you designate a reputable “nominee trustee”, such as Royal Legal Solutions, you can rest assured that your trust agreement contains everything you need it to. In fact, when Royal Legal Solutions is designated as your “nominee trustee”, the filing process is not only easier. But it also ends with our firm resigning as the trustee and transferring the land trust back to you as the sole trustee. What does this do for you? In doing this, Royal Legal Solutions will be the trustee of record, protecting your anonymity. You will retain all rights related to the property, including the ability to sell it. (You will need the trust agreement to successfully sell a land trust property.)

Royal Legal Solutions, Your Ideal Living Or Land Trustee

At Royal Legal Solutions, we aim to protect your assets. As your nominee trustee, we ensure your trust agreement reads exactly as you need it to. We do not include hidden clauses that will bar you from your rights to the property. We understand the importance of asset protection and anonymity. If you would like to schedule a consultation with Royal Legal Solutions, please contact us today. After all, you invested in the property and deserve the full benefits a land trust can provide.

Estate Planning Opportunities With a Self-Directed Roth IRA LLC

Roth IRAs, while primarily used for the purposes of retirement, can also be useful for estate planning. The main difference between a Roth IRA and a traditional IRA is that distributions from a Roth account are not taxed. Contributions to the Roth are taxed.

Furthermore, traditional IRAs may be converted to Self-Directed Roth IRA accounts. The question then becomes: How can you use this to your advantage in terms of estate planning?

Understanding the Estate Tax

There’s no way around the fact that an IRA, regardless of the kind, is included as a part of the owner’s estate. When the IRA is inherited, the beneficiary is required to include each distribution as part of their yearly income tax. The distributions can be stretched out for the individual’s entire life expectancy, but yearly distributions are mandatory.

Estate Planning Benefits of Converting to Roth IRA

If you decide to convert a traditional IRA to a Roth IRA, you will have to pay taxes on the amount going into the account, since Roth accounts tax contributions and not distributions. You also don’t have to convert the entire account over to the Roth, but whatever you convert will be taxed, so bear that in mind.

Nonetheless, there are significant benefits to converting to a Roth in terms of estate planning. Some of the major ones are:

Distributions Are No Longer Taxable

You’re going to be basically paying off the taxes on behalf of those who will inherit the account when you convert it to a Roth. In fact, you can leave this as a notice upon your passing to pay off the taxes for the conversion and that would reduce the amount of taxes you would pay on your estate. Each time your beneficiaries take a distribution, the money would not be taxed.

You Are Not Required to Take Roth Distributions During Your Lifetime

With a traditional IRA, you must begin receiving distributions once you hit 70 ½ years of age. Not so with a Roth IRA.

Growth Is Not Taxable

Traditional IRAs have tax-deferred status. Roth IRAs are essentially tax-free. The longer the IRA has had time to mature, the better the potential payoff. The growth of the IRA is tax-free and so are the distributions, giving you and your heirs non-taxable income for the remainder of your lives.

It’s a Great Time to Convert

The new Tax Cuts and Jobs Act has made converting from a traditional to Self-Directed Roth IRA historically cheaper than it’s ever been before. It’s a great time to take advantage of low tax rates in order to save money on the cost of converting.

Executing a Stretch

To execute a stretch, simply pass the IRA to the youngest person in your family. A good example is a grandchild. Since the value of the distribution is prorated over the course of the child’s life, it stands a good chance of being less than account’s annual earnings. Another option would be leaving the Roth IRA to a spouse who would not be required to take any distribution at all. When the spouse passes, the Roth can then be handed over to the youngest child in the family.

Understanding Living Trusts: Your Quick Guide To How They Work

Living trusts are an estate planning option that few individuals make use of. Fundamentally, a living trust acts in much the same manner that a will does. A revocable living trust, however, offers some options that a will does not.

In the most basic possible terms, a living trust is a legal container for property that is created by a trust agreement. The trust takes the title of various properties and assets. Control of those assets is granted to a trustee.

In the majority of cases, the trustee is the same individual that is funding the trust. This begs the most obvious question: why?

Understanding the Basics of Living Trusts

Why would someone create a legal document to give themselves control over property they already have control over?

The one major benefit of a living trust is that it names beneficiaries of your assets upon your death and can avoid the court system during distribution. The key factor that distinguishes it from a will is that it is designed to avoid probate.

The Benefits of Establishing a Living Trust

Why would you want to establish a living trust?

The Disadvantages of Establishing a Living Trust

Aside from the fact that living trusts cost money to set up, there are a number of things to bear in mind when establishing a living trust. Living trusts do not always avoid the problems they are designed to avoid, and there are legal complexities to the process that are not always obvious.

Transferring Assets to a Trust Means that You No Longer Own Them

It’s important to keep in mind that when a property or asset is transferred to a trust, the asset becomes property of the trust. For instance, if you were to transfer a car to a living trust, you might find it difficult to insure the car as a result, since the car is no longer in your name. This, in fact, makes it difficult to transfer certain kinds of assets into the trust.
Only when the titles of these assets are transferred to the trust do they avoid the probate process.

Living Trusts are Not Tax Havens

There are some people that are under the impression that living trusts allow assets to transfer tax-free. That isn’t the case. Assets stored in a living trust are not granted any kind of special tax consideration, either while the grantor is alive, or after the grantor has passed.

In addition, all assets in a living trust are considered “countable” for the purposes of qualifying for entitlements such a Social Security or Medicare.

Living Trusts are Not Creditor Havens

Assets that are placed in a trust are still subject to claims brought forth by creditors. In other words, living trusts don’t “shield” your assets from claims against the estate, either while you’re alive or after you’ve passed.

When Does a Living Trust Make Sense?

Not everyone will need a living trust. There are, however, instances in which having one makes a great deal of sense. Read on ...

Living Trusts can Avoid Probate Messes

Since probate is governed by state law, properties held across multiple states can be subject to any number of jurisdictional restrictions depending on where they’re held. While going through probate is not necessarily the end of the world, going through probate in multiple states can get relatively messy. In addition, there are some states that have particularly complicated probate laws. Properties held in California and Maryland are solid candidates for a living trust.

Florida is another candidate for a living trust. There are restrictions on who can serve as a personal representative for a descendant. With a living trust there, is no such complication.

Living Trusts Offer More Privacy

The one major advantage of avoiding probate is that court proceedings are a matter of public record. For those whom privacy is a major consideration, living trusts can be an ideal way to distribute your assets after you pass.

The Bottom Line

Living trusts are a legal vehicle that individuals use to pass their assets. They function like a will but have the advantage of avoiding probate when they’re drafted properly and when all assets have been transferred properly. For most people, a well drafted will is about all they’ll need.

For those with a lot of assets or assets spread across multiple states, a revocable living trust is a powerful legal tool that can streamline the process of distributing assets after death. Trusts have the advantage of being more difficult to contest. They are also easier to amend than wills. Update your living trust when it's needed and you can rest easy, knowing you're handling an important aspect of your asset protection strategy.

Trustee Vs. Executor: Who Do You Need For Estate Planning?

Unless you are the villain in a spy thriller, there's unlikely to be any intrigue surrounding the reading of your will. Sure, this is a great cinematic device, but a "surprise" announcement regarding your trustee or executor is neither funny nor mysterious in real life.

The events following your death will most likely be painful and dramatic enough as it is. You can ease some of the misery by planning ahead, and letting your chosen executor and trustee(s) know about their jobs ahead of time.

That said, sometimes the executor or trustee really do find out at the last minute. Whether you're in this situation or planning your own estate, this article is for you. You'll learn about the duties of both positions, and how to survive if you're picked to serve as either.

What's the Difference Between a Trustee vs. Executor For Estate Planning?

The executor represents the dearly departed. This person is tasked with administering and distributing the estate. For an executor to do their job properly, he or she must know the identities of any heir and have a solid comprehension of the will. Their main job is to ensure the deceased's wishes are carried out.

Trustees, on the other hand, have a more narrowly defined role: managing a trust. Not all estates necessarily have trusts, but many do. The first order of business for a trustee is to clarify which assets are held within a trust. Check out our asset checklist for estate planning to get started.

It's rare for all of a person's assets to be placed in a trust, so some may be stated only in the will or other documents.

In estate planning, trusts are used to clear up any possible confusion about where certain possessions go. A person may decide to use a trust to offer guidance and maintain more control over their estate. The trust's "job" is to literally own properties, cars, family heirlooms, or any other assets that the creator decides to place within it. The person who creates the trust provides for its funding. The trustee, who may be an individual or even several people, is tasked with determining how money and other assets flow in and out of the trust.

Trust executor duties include liquidating estates. Trustee duties include managing estates.

The former is usually temporary, while a trustee might serve in that capacity for years. There is rarely compensation for either. Many have tried to monetize this position, and few have succeeded. So if someone asks you to serve in either capacity, there are some things you'll want to be aware of. After all, you want to honor your deceased loved one's wishes, don't you?

If this happens to you, don't be afraid. We've got some tips on how to execute and cope with your new responsibilities.

Get Your Estate Planning Paperwork in Order

Before you do anything, you need to review any and all paperwork relating to the estate. These should cover the basics: funeral arrangements, how the deceased wants the estate managed, and preferences about matters like burial. Assuming the deceased planned ahead, there will also be a specific document cataloging valuables like heirloom necklaces or firearms. In legalese, we call this a "memorandum of personal property."

Next you need to determine the assets, which is usually only a hassle if the document above is incomplete or totally absent. If you're in such an unfortunate situation, you may need to get some help. Death leaves quite the paper trail. You're going to need to hunt down everything from the glaringly obvious like bank accounts and real estate, to the not-so-obvious assets like IRAs/401ks, and perhaps a secret vault or two if you get lucky.

Identify the Heirs

Most of the time, heirs are direct relatives. You can usually expect to see them at the funeral. Even if you don't, your paperwork from above should list any heirs. But you should know ahead of time these matters often get sticky. What if one of the heirs has died themselves? Details like this can easily go unnoticed if the most recent will is, say, ten years old. This is when it becomes your job to make a decision--one that can breed contempt under the best of circumstances. Hey, there's a reason people have tried to figure out how to get paid for theses services.,

Speaking of money, there are almost certainly going to be creditors that need to be paid. You need to guarantee that all creditor claims are taken care of from the estate. If you don't pay up, you may suffer liability. "Liability" is legalese for "an all-around bad time."

Yeah, this is a thankless job.

Deal With the Creditors

It doesn't take long for the vultures to circle. You'll have two kinds of creditors to tango with: secured and unsecured. Worry about secured creditors first. These are folks like conventional lenders. You'll want to make sure these types of creditors are notified of the deceased's passing right away. Make payments immediately, as soon as reasonably possible. This is to avoid that all-around-bad-time mentioned above.

Unsecured creditors, on the other hand, are a totally different ballgame. They have to actually come after you in the form of a claim. Unsecured creditors can include everyone from the neighborhood bookie to the (much more likely) credit card companies. Fortunately, credit card companies are fairly realistic about the fact that they're unlikely to be paid off in full. So bust out your haggling skills. There is some wiggle room about the total bill, but don't expect the company to tell you that.
While credit card companies won't break your kneecaps, they can make probate court an even bigger pain in the ass than it already is. Both types of creditors can demand and collect legal fees in a court setting. If the estate ends up in probate court, you will be obligated to alert all creditors of this fact.

Still with me? At this point, nobody will blame you for cursing whoever named you executor.

To recap: Don't mess around with secured creditors. It's a good idea to delay making unsecured creditor payments, because if a claim is never made you won't be on the hook. There's also a clock on how long these types of creditors have to make a claim at all.There’s a good chance this one is going to take care of itself by dissolving into the ether of banking bureaucracy. Now it's time for the fun part: probate court.

Probate Court For Estate Planning

The estate documents should outline exactly how the estate will be administered. Sometimes, the court has to approve certain aspects of this, such as when the family home is transferred to an heir. This is particularly common if the estate is based solely on a will (all the more reason we should all be thorough in our estate planning.)

If the estate you're dealing with is more "Jerry Springer" than "cinematic drama," you may find issues with the identities of the heirs. We're kidding. This is actually more common than most of us would think. Fortunately, it's on the court to figure this out. You've got enough on your plate. Let the judge interpret the law, or anything ambiguous for that matter. Even if you have legal chops of your own, you'll likely need a greenlight from the court to interpret much of anything.

We're approaching home base: stay with me, folks.

Income Tax Returns

That's right, you get to deal with both of life's inevitabilities in one experience: death and taxes. You'll have to file the deceased's final tax return. You'll want to be certain that you label the returns with the word "DECEASED.

As your last task, you may have to also file an estate return. This is legally required if the estate earns over $600.00 in gross income.

Final Legal Estate Planning Tips

Don't go it alone if you don't have to. We're sure you're smart, but it's unlikely that you are both an attorney and a CPA. Enlist help from the pros. The estate will assume their costs, particularly if it is a large or complex one. If you spend any of your own money in the course of your duties, the estate should reimburse you.

Be aware that this is a sensitive time for the relatives and other loved ones.The role can be as emotionally draining as it is time-consuming. But don't forget that you have a job to do, and you must do with your head and not with your heart.

If you've been tapped to act as a trustee or executor, or if you need estate planning services yourself (if only to spare your loved ones from some of this rigmarole), get help from experts who know all types of estate planning and administration issues, and who can help in a compassionate manner. Don't let your death become a big traumatic affair played out on the probate court stage.

You Can Use Your Self-Directed IRA To Buy A Retirement Home. Here's How.

In my experience, a retirement that you are in charge of makes for a better retirement than one that is financially uncertain.

If you are starting to think about where you’ll be spending your retirement, you’ve probably been growing your IRA for some time. If real estate investing is what has gotten you to where you are now, you might want to think about buying a retirement home from your self-directed IRA, also known as a SDIRA or solo IRA.

You can use a self-directed IRA to purchase your retirement home  before your loving children dump you on the side of the road and run off with their inheritance. Here's how.

What To Know About Buying Your Retirement Home With Your SDIRA

This is one of the great reasons to go with self-directed IRA. Traditional IRAs can hold investments, but you can’t buy a home with them. With a self-directed IRA you can buy an investment property and distribute later for personal use. This is black-belt level stuff. You can rent the property as an investment, so you are still making money off of it until you are ready to retire and move in.

To do this you need to purchase the property through your IRA, which will own it as an investment until you retire. When that time comes, you will distribute the property via title transfer from your self-directed to your traditional IRA.
This makes your retirement home a retirement benefit.

Beware of Prohibited Transactions

You need to avoid prohibited transactions. You cannot use the property. Your family cannot use the property. You do not own the property. It is the IRA’s property. It rents the property; you don't.

The rental income accrues in your account because, I repeat, your IRA owns the property. You can lease the property, of course—that’s how investments work. They make income. You will have to lease it to someone outside the family until it’s been distributed, but after that, your dream home is all yours.

Be Smart About Distributions and Taxes

When you take control of your retirement home, it is an “in kind” distribution and it means taxes are due for traditional IRA’s. If your future retirement home was appraised at $250,000, you will receive a 1099-R for $250,000 from your custodian upon distribution.

Distribution taxes can be high. You might prefer to take partial distributions over time, to spread out the pain, but it’s going to sting no matter what you do and this can be a trap. You need appraisals every year for fair market valuation. These valuations cost money. Whatever you decide, you and your family cannot use the property until it has been 100% distributed.

As with most things retirement related, if you take a distribution before you are 59½, you’re going to pay a penalty. Ten percent is stiff. Be patient.

Do Your Homework Before Buying

This process of home ownership isn’t going to work for everyone. It takes a lot of work, but most things worth doing are a lot of work, including putting yourself in a position to purchase a retirement home in the first place. It is possible, but if you self-direct your IRA investments, make sure you understand relevant investment laws and tax structures.

You need to be like a Boy Scout when it comes to retirement planning. Be prepared.

4 Pet Law Facts Animal Owners Should Know

I once owned a pit bull named Jackson. He went down a bad path. He was a product of public obedience school. I was too busy with my legal career to notice that Jackson was out on the corner hustling with local thugs.
Every night I went to bed thinking: "Please, don’t make me financially responsible for my pet’s poor life choices. Please."
There are a lot of situations where pet law can get rough. Pet custody is fiercely contested in divorces. Your pet might go down a bad road like mine did. And heaven help you if yours commits the greatest crime in the canine criminal code: biting somebody. You will also have to make provisions for your animals after you’re gone.
Pets are beloved family members, but there are some legal realities that you need to be aware of if you are a pet owner. To that end, here are a few Pet Law fundamentals.

1. Pets are property, and "duds" happen. 

If life sells you a lemon, trade it in for an orange. Or at least something that isn't dying. It may not be the kindest idea, but if you purchase a pet with an illness or a disease, you can return it for a full refund in 21 states. Then you just have to live with the knowledge that Snowball is going to be left on a rock to be consumed by an eagle. Circle of life.

2. Laws regulating the treatment of pets vary from state to state.

All laws regulating pet care can be reduced to one Elvis Presley maxim: don’t be cruel. Don’t leave you dog outside in a hurricane. Don’t leave them in a hot car. And of course, no dog fighting. I thought this one was common sense, but it seems necessary to say it out loud because Michael Vick did 18 months for it. If dog fighting gets you off, you might also want to consider a psychiatrist. You’re a sadist.

3. Pet custody issues are real: understand them.

Look, you love your dog and so does your wife. You might love it more than your car but less than your boat. You might love it more than your children but less than your dinner. To be frank, the law doesn’t care. Pets are considered property no matter how meaningful deep attachment to them may be.
So, in the event of a divorce where pet ownership is in dispute, the court has to consider a number of factors similar those that would be considered during a child custody hearing. Of course there are differences, since you legally own your dog. You don't own your kids. That’s why you can’t put them to work in your salt mine.
Still, the rubric for pet custody and children is similar. The court considers who took care of the pet and who can pay for it. If it is a family pet, it will likely end up wherever the children go. Either way, this is going to be in the judge’s hands. If pet custody is important to you, prepare your case.

4.  Include your pet in your estate plan.

So, you’ve been dead for a week. Your dog has finished mourning at your grave and now he needs to eat. Who is going to feed him?  If you want your pet taken care of after your passing, you can state in your trust or will what provisions you are leaving behind for its care. You can create a "pet trust" to outline the care of your pet after you are gone.

There is good chance there is someone in your life who will take the pet for free because generally speaking we all no at least one person who isn’t completely heartless. If you don’t, I’m sorry that you are dying alone, but cheer up! You can see to your pet’s care either way. Leona Helmsley left millions of dollars to her dog. I mean, none of it was spent on her dog, but if the dog one day developed the powers of speech through the integration of silicon-based microprocessors and the carbon-based canine brain, he might say something like, “You know what I want to do? I want to take LADY to TONY’s for a nice plate of spaghetti.” If that were to happen, TRAMP could afford to take his girl for a nice dinner and a bottle of Chianti.
If you want your pet to fill the void left by your absence with a jettsetting, playboy lifestyle and a solid gold grill, you can leave them your entire estate. Tony will appreciate the business.
Do you have questions about pet ownership or pet law? Fire away in the comments below. Better yet, let Royal Legal Solutions help you. Whether you want to protect a show dog or racehorse as an asset or incorporate your emotional support peacock into your estate plan, we've got you covered. Our nonjudgmental, empathetic attorneys are pet parents themselves. Schedule your consultation today.
 

Pet Ownership Laws & How They Can Bite You In The Assets

I once owned a pit bull named Jackson. He dropped out of obedience school and went down a bad path. I was too busy with my legal career to notice that Jackson was out on the corner hustling with local thugs.

Every night I went to bed thinking: "Please, Lord. Don’t make me financially responsible for my pet’s poor life choices. Please."

There are a lot of situations where our furry and feathered friends run afoul of pet ownership laws. Pet custody is fiercely contested in divorces. You will also have to make provisions for your animals after you’re gone.

Your pet might go down a bad road like mine did. And heaven help you if yours commits the greatest crime in the canine criminal code: biting somebody. 

Pets are beloved family members, but there are some legal realities that you need to be aware of if you are a pet owner. These legal risks also may apply if you are a landlord or property owner and your tenant's dog bites someone. To that end, here are a few pet law fundamentals.

pet ownership laws: bird law

Laws regulating the treatment of pets vary from state to state

All laws regulating pet care can be reduced to one Elvis Presley maxim: don’t be cruel. Don’t leave your dog outside in a hurricane. Don’t leave them in a hot car. And of course, no dog fighting.

I thought this one was common sense, but it seems necessary to say it out loud because Michael Vick did 18 months for it. If dog fighting gets you off, you might also want to consider a psychiatrist. You’re a sadist.

Whether you're a dog owner or a property owner with "animal-friendly" policies, know the laws regarding animal treatment where you live and do business.

Pet custody issues are real: understand them

Look, you love your dog and so does your wife. You might love it more than your car but less than your boat. You might love it more than your children but less than your dinner.

To be frank, the law doesn’t care. Pets are considered property, just like any other asset, no matter how meaningful or deep your attachment to them may be.

So, in the event of a divorce where pet ownership is in dispute, the court has to consider a number of factors similar those that would be considered during a child custody hearing. Of course there are differences, since you legally own your dog. You don't own your kids.

Still, the rubric for pet custody and children is similar. The court considers who took care of the pet and who can pay for it. If it is a family pet, it will likely end up wherever the children go.

Either way, this is going to be in the judge’s hands. If pet custody is important to you, prepare your case.

pet ownership laws: pit bull with kissesInclude your pet in your estate plan

So, you’ve been dead for a week. Your dog has finished mourning at your grave and now he needs to eat. Who is going to feed him?  

If you want your pet taken care of after your passing, you can state in your trust or will what provisions you are leaving behind for its care. You can create a "pet trust" to outline the care of your pet after you are gone.

There is good chance there is someone in your life who will take the pet for free because, generally speaking, we all know at least one person who isn’t completely heartless.

If you don’t, I’m sorry that you are dying alone, but cheer up! You can see to your pet’s care either way. Leona Helmsley left millions of dollars to her dog.

If you want your pet to fill the void left by your absence with a jettsetting, playboy lifestyle and a solid gold grill, you can leave them your entire estate. Tony will appreciate the business.

Don't Get Left Holding The Bag If Your Tenant's Dog Bites Someone

What happens when your tenant’s dog bites a neighbor? Generally, the dog owner is the one liable for injuries.

However, there are instances in which the landlord or property owner can be legally responsible. For example, if the landlord has been made aware of a dog having an aggressive streak and failed to take appropriate measures, he or she could be facing a lawsuit.

Remember: One lawsuit can wipe your real estate investments if your investing business is established as a sole proprietorship. It may be a legal and easy way to structure your business, but it does little to protect you and your assets. The neighbor’s lawyers can see all of your investments, and you can be sued for everything you have.

It doesn’t matter if you’re just starting out in property investing or if you have been doing this for decades, you can keep more of what you earn through legal tax strategies and entity structures that shield your assets from unexpected lawsuits.

Interested in learning more? Read Renting To Tenants With Dogs: What Landlords Need To Know About Liability and Dog Bites and Landlord Liability: Know Where You Stand.

Wrapping It All Up

Most lawyers will give you cookie-cutter advice. You should learn from lawyers who are also property investors and who know how to protect you from any opportunistic lawsuits while making sure you pay no more tax than you really need to. Find someone who can legally structure a range of real estate investments to make sure your real estate investments or business are protected from unfair taxes or lawsuits.

Do you have questions about pet ownership or pet law? Fire away in the comments below. Better yet, let Royal Legal Solutions help you. Whether you want to protect a show dog or racehorse as an asset or incorporate your emotional support peacock into your estate plan, we've got you covered.