Thank you for the detailed agenda. Private webinars allow us to customize the content to your specific needs and situation. Some additional topics we could cover include asset protection planning, business succession planning, charitable giving strategies, and healthcare directives. Please let me know if you would like help scheduling a private webinar. I'm happy to work with you to identify the most important topics and structure an agenda.
1. THE PHYSICIAN’S GUIDE TO
CREDITOR PROTECTION
Presented to:
Medical Business Leaders Network
Thursday, March 8, 2012
ALAN S. GASSMAN, J.D., LL.M.
PARIKSITH SINGH, M.D.
Alan S. Gassman, Esq. Pariksith Singh, M.D.
agassman@gassmanpa.com psingh@accesshealthcarellc.com
12. GASSMAN LAW ASSOCIATES, P.A.
COMPLIMENTARY WEBINARS
ESTATE, ESTATE TAX &
HEALTH CARE LAW AND PHYSICIAN ISSUES
CREDITOR PROTECTION PLANNING
•Protecting Medical Practice Assets from Creditors – General
•Creditor Protection for the Single Floridian
Strategies and Common Mistakes
•For Couple’s Only – All About Tenancy by the Entireties – How To
•Creditor Protection for the Single Physician
Use It – How To Lose It
•Cornflakes and Estate Planning Mistakes •Special Planning Needs for Doctors Who are Married to Doctors
•How to Advise Clients Under The New Estate Tax Law •Malpractice Litigation Defense Strategies for Florida Physicians
•What Has Just Changed With Regard To Undisclosed Foreign •Unannounced Medicare Audits; What To Do If Investigators
Accounts Come To Your Office
•Helter Shelter – Planning with Credit Shelter Trusts Under the •A Medicare Practice Compliance Paperwork Checklist for Florida
New Estate Tax Law Physicians
•Major Changes in the Florida Power of Attorney Law: What You
•Understanding ACO’s in 30 Minutes – A Physicians Guide
Need to Know – With A View From The Bench
•What Mary Poppins Didn’t Know About Umbrellas: Ensure that
•Giving A Deposition – What Doctors Need To Know
your Insurances Will Insure You
•The 15 Minute Guide to the New Florida Power of Attorney Act •New Healthcare Price Transparency Rules
•Riders on the Storm: How to Make Sure Your Insurances Do Not •How the New Pain Care Clinic Regulations Affect Your Medical
Have Any Catastrophic Exceptions or Gaps Practice
•How Medical Practices Can Respond to the New Healthcare Law
•Drafting Durable Powers of Attorney for the New Florida Law With
and Eminent Changes
Forms
•Common Mistakes in the Filing of Gift Tax Returns and How to •How to Market Your Medical Practice
Avoid Them, With Sample Form 709 Completed Pages
TO CONTACT US FOR INFORMATION ON OUR COMPLIMENTARY WEBINARS
PLEASE CALL 727-442-1200 or email agassman@gassmanpa.com
They are available for viewing and download at: www.gassmanlawassociates.com/webinarlibrary.html 12
22. COMING SOON FROM BNA AND ALAN GASSMAN
Highlights include:
Impact on 2010 Tax Relief Act
Options for traditional planning structures
Best practices: Portability of estate tax exemption
vs. credit shelter planning
How to integrate asset protection into the
estate plan
How to repurpose redundant life insurance trusts,
and more!
If you would like to purchase a copy of the book
please email agassman@gassmanpa.com
22
23. New Estate Tax Law Summary
2009 2010 2011-2012 2013 and Our Best Guess for
thereafter Future
Annual Exclusion Gifts $13,000 $13,000 $13,000 (unless $13,000 Same
(Don’t Count at All) adjusted to $14,000)
Tuition and Medical Unlimited Unlimited Unlimited Unlimited Same
Direct Payment
Like Before Like Before Like Before Like Before
Exemption
Lifetime Exemption $1,000,000 $1,000,000 2011 - $5,000,000 $1,000,000 Between
2012 $5,120,000 $1,000,000 and
$5,000,000
Estate Tax Exemption $3,500,000 (less Unlimited—See 2011 - $5,000,000 $1,000,000 (less Between
what was used of Footnote* 2012 $5,120,000** portion of used $3,500,000 and
$1,000,000 above) (less portion of used lifetimes gifting $5,000,000
lifetime gifting exclusion)
exclusion)
Estate Tax Rate 45% 35% 35% 55% 35%
Discounts and Available Available Available initially (at Let’s hope these Who knows?
Installment least, not sure about are not lost in tax
Sales/GRAT’s, etc. rest of 2011-2012) legislation
compromises.
Portability of First Dying No No Yes Not as presently Will be continued.
Spouse’s $5,000,000 legislated.
Exemptions
*Although the default is a $5,000,000 exclusion, with a 35% tax rate, an election can be made to have no estate tax apply with respect to decedants dying in 2010, but the
income tax “stepped-up” basis is limited for larger estates.
** In addition to the above, the amount that passes estate tax-free ($10,240,000 per couple) will increase with the cost of living beginning in 2012 in $10,000 increments.
***The State Death Tax Credit still does apply. There is a state death tax deduction in 2010 through 2012, and the State Death Credit would return in 2013.
****Note that exclusion increase does not apply for Non Resident Aliens or future or already existing Qualified Domestic Trusts (QDOT’s) established for Non Resident Alien
spouses. They still are subject to a $60,000 estate tax exclusion level for assets subject to US estate tax and need planning as much as ever!
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25. Determining Best How To Allocate Assets As Between A Married
Couple
Part II
Wife could be Trustee if
Subsidiary Entity Techniques:
Husband is sole grantor
-Limited partnerships can be used to facilitate discounts, for estate tax purposes, and for charging order Trustee other than
Husband Wife protection.
(or vice versa)
-Limited partnerships and LLCs can also be used to provide “firewall protection” from activities or properties owned. Wife
Husband or
Husband’s Wife’s Gifting Trust Lifetime By-
Revocable TBE Revocable (Irrevocable) Pass Trust
Trust Trust (Irrevocable)
(Tenancy by the
Entireties)
• Assets held directly by • Only exposed to creditors if • Safe from creditors of husband 1. Safe from creditors of
both spouses owe the 1. Safe from the creditors
revocable trust are subject to but exposed to creditors of wife both spouses.
creditor or if one spouse of the Grantor’s spouse.
husband’s creditor claims. (Maintain large umbrella liability 2. If divorce occurs,
dies and the surviving 2. If funded by one spouse,
• Direct ownership of limited insurance coverage to protect should not be subject
spouse has a creditor, the may benefit other spouse
partnership or LLC not in TBE these assets.) to rules for division of
spouses divorce, or state and children during the
may have charging order • On wife’s death, can be held property between
law or the state of residence lifetime of both spouses.
protection (meaning that if a under a protective trust, spouses.
changes. 3. Otherwise can be
creditor obtains a lien on the which will continue to be safe 3. May be controlled by
2. On death of one spouse, identical to gifting trust
limited partnership or LLC, from creditors of husband and the “entrepreneurial
surviving spouse may disclaim pictured to the left.
the husband cannot receive subsequent spouses and “future spouse” by using a
monies from the limited up to ½ (if no creditor is new family” Family Limited
partnership or LLC without pursuing the deceased Partnership.
the creditor being paid). spouse) to fund By-Pass Trust
on first death.
SECOND TIER 97% 96% 100%
3% 1% 3% Husband,
PLANNING:
Manager
FLP FLP LLC
FIREWALL
LLC
Leveraged
Investment
Property or activity
A COMMON SOLUTION - to use a limited partnership or similar mechanisms and have no assets directly in the “high risk” spouse’s trust, half to two-thirds of
the assets held as tenants by the entireties, and half to two-thirds of the assets directly in the “low risk” spouse’s trust. 25