Monday, August 17, 2009

Will 2010 Be A Good Year to Die?

While most of us would rather live to see another year, as it turns out, 2010 might be a good year to die, at least from an estate planning/taxation perspective.

Because of changes in tax law with regard to estate taxation, for those who die in 2010, there is no limit to the amount passed along to heirs tax-free. The current limit for such assets is $3.5M per individual and $7M per married couple.

In the estate planning field, we've been working with this shifting target for some time, as estate tax was imposed on value in excess of $2M for 2008, then $3.5 for '09, and some strategies for best tax-favorable estate structures are better than others.

While 2010 may represent a great year to die so far as estate taxation goes, beware that if you base planning on the 2010 tax scheme, and you miss your mark, your heirs may have more than only your loss to mourn, as the estate tax returns for 2011 with an exemption of a paltry $1M per individual, a figure sure to impact a significant amount of wealth passed to the next generation.
As pointed out in this Wisconsin Law Journal article, a sound strategy may be to structure the estate plan with the current rules in mind, and an understanding that more aggressive planning may be warranted in the near future.

Tuesday, June 16, 2009

Advanced Asset Protection - Is Exotic synonymous with dangerous?

It's been some time since I've last posted information for my readers - well, busy is good! But I know I've left this page silent for too long.


I'm going to provide just a little teaser today, as time, alas, is still short. A quick few comments on advanced asset protection strategies - the offshore entity.


Most think "exotic" "mysterious" "dangerous" or even "illegal" when the topic of establishing an offshore company comes up. While some of the most advantageous jurisdictions are in exotic locales famous for year-round sunny beaches and warm tropical breezes, the rest of the stereotypes are just that, stereotypes - based on lack of information or mis-information.


I am a advocate of using favored offshore jurisdictions for establishing Limited Liability Companies under certain circumstances to take advantage of flexible corporate code and strict privacy measures. By utilizing the same liability insulation mechanism available under the best of our domestic limited liability statutes, and combining that with privacy and a remote locale, we can establish a significantly higher level of risk isolation to those assets held by the offshore entity. With the proper planning and mechanisms in place, we can also spirit domestically held assets into the offshore holding if adverse circumstances should arise.


Sound asset protection planning is no more exotic than sound estate planning. If you've got assets to protect, in this time of economic uncertainty, now, more than ever, ensuring those assets remain available for you or your loved ones into the future, even under adverse attack, is the most important consideration on the table.


As they say, failing to plan is synonymous with planning to fail. Lawsuits of every kind appear to again be on the rise (judging from the inquiries my office has been receiving in the past several months, a huge spike). People are looking for deep pockets and a way to cash in - is what you worked so hard for at risk?


Some key factors to examine when considering offshoring for asset protection are a thorough understanding of the jurisdiction's governing code, a stable government structure, reasonable costs to do business within the jurisdiction, and ease of access. If you are interested in exploring the areas of advanced asset protection through the use of offshore entities, feel free to contact my office. We're always happy to help find a way to protect your business, estate or individual assets.

* Note that this information is provided as general information only and does not constitute legal advice with regard to any particular set of circumstances. As with any legal issue, consult with an experienced attorney if you have questions regarding matters related to the topics discussed in the blog or video. Davidson Law Office and Attorney Kevin Davidson do not provide legal advice outside of an attorney/client relationship memorialized by a written and signed contract for legal services.
Davidson Law Office, LLP is a Wisconsin law firm with a focus on litigation, business, asset protection and estate planning. Serving clients throughout Wisconsin from the heart of the Fox River Valley between Appleton and Green Bay.

Friday, January 23, 2009

Right to Long Hair Upheld for Native American Kindergartner

You wouldn't think this is the kind of thing people would have to go to court over. You wouldn't think anyone would need to defend a constitutional right with regard to how to style a 5 yr. old's hair.
You would be wrong.
The Needville, Texas policy is: boys WILL NOT wear long hair!

Well ... that's how it used to be.

A Needville Texas school enforced a policy that required a 5-year-old native American boy to wear short hair or conceal his long hair, and they isolated him in "special" classes if he didn't.

The boy's father observes the Apache tradition of wearing his hair long and considers the hair to be sacred, only to be cut under specific 'major life' circumstances. The boy's hair is worn long, as well - waist long, in fact.

Challenging the school's policy, the boy's father was joined by the ACLU, and they ultimatley prevailed on freedom of religious expression grounds.

A federal judge, on Tuesday, January 20, held the school's policy violated the Constitution by punishing the American Indian kindergartner for religious beliefs that required him to wear his hair long.

Full Article -> Houston Chronicle Article here.

Tuesday, January 06, 2009

What Profession Boasts Best Liar? Why, Lawyer, of Course!

The 2008 honors for "Best Lie" was bestowed on an attorney, of course.

According to this January 6, 2009, WLJ article by Jack Zemlicka, the Burlington Liars Club, a Wisconsin organization, honored 71 year old retired attorney Garth Seehawer for crafting the best lie of 2008.

Here's the Winner:

“My grandson is the most persuasive liar I have ever met. By the time he was 2 years old he could dirty his diaper and make his mother believe someone else had done it.”
Seehawer noted that "they don't allow submissions from politicians..." so attorneys may not be the best.

Friday, November 14, 2008

A Little Legal Humor for Friday Afternoon

In a Nov. 10th decision, the 7th Circuit agreed that someone who is already dead can not be required to subsequently file with the court a "suggestion of death" to preserve rights in a pending lawsuit.

Judge Posner stated, in part, "... ridiculous ... a suggestion of death cannot be authorized by the person who has died ..." <(0 0)>

Wednesday, November 05, 2008

Business Liabilities and Indemnity Clauses

I was recently approached by a business owner with the simple question of "if there is a waiver of liability in my contract, I'm wondering what happens if someone gets hurt in connetion with the particular activties/services provided under the contract.

Well, what starts out as a seemingly simple question, never ends up as a simple answer once you ask a lawyer ...

However, without making this more complicated than it needs to be, while the waiver of liability, or "indemnity clause" provides a first level of protection under a contract, you can bet you shirt that if someone is seriously harmed, everyone involved in any way, shape or form will be named in the forthcoming lawsuit. And, indemnity clause or not, it may cost a heap of money and a heap of headaches to defend, potentially putting the business and personal assets at risk.

If you happen to be involved in small business activities, there are several pre-emptive steps you can nd should take to ensure that you don't lose your shirt and your business if anything bad should happen.

The two most fundamental risk mitigation strategies for small businesses are insurance and proper choice of entity structure.

In addition to ensuring water-tight indemnity clauses are included in every contract, the business owner should consider establishing a seperate business entity for each business activity - especially if it is a relatively diversified business. Make sure that you and your business(es) have plenty of liability coverage, and the right kind of coverage is provided under those policies for the type of activities that the business is engaged in.

Depending on the specifics of the business and/or its activities, additional steps may be warranted.

Without an ounce of prevention, you may be putting yourself and your business at risk of taking on ten pounds of problems.