...placing an asset with minimal value, but with great growth potential into an irrevocable trust can avoid all estate and gift taxes.
Boston, MA (PRWEB) April 23, 2013
Estate Street Partners, creators of the UltraTrust irrevocable trust is awaiting the judgment by federal bankruptcy Judge K. Rodney May [In re: Casey Marie Anthony, 8:13-bk-00922-KRM Ch. 7, U.S. Bankruptcy Court, Middle District of FL, Tampa Division(2013)] to determine if the bankruptcy Trustee’s Motion for Casey Anthony’s life story to be up for auction is allowable after Anthony filed for bankruptcy on January 25, 2013 (5).
Anthony’s life story has not even been written yet (1). Reported by Wesh.com (5), an NBC affiliate, Judge May stated that he is “skeptical” because it will prevent her from making a “fresh financial start.” However, Estate Street Partners is now closely following this case’s outcome which will not be determined until May 9th.
As a result, Rocco Beatrice, managing director of Estate Street Partners, is advising that everyone who creates an irrevocable trust should place their life story in an irrevocable trust.
The majority might find it odd to put one’s life story in an irrevocable trust, but Mr. Beatrice is asking, “Why not?” Before the death of her daughter, Anthony most likely never dreamed that anyone would want to write anything about her.
“One never knows what is going to happen, so being prepared is always the best route,” explains Mr. Beatrice. “Whether its bankruptcy and fame like Casey Anthony or a lawsuit, one’s life can be turned upside down in no time.”
According to court records, Anthony filed for bankruptcy claiming that she owes creditors over $800,000 (8). When she filed for bankruptcy, the court appointed a trustee to oversee the assets of the bankruptcy filer (6).
The bankruptcy trustee accounts for all of Anthony’s assets and determines in what order her creditors will be paid and if they will be paid fully, partially or not at all. In the Anthony bankruptcy, according to court records, the trustee is attempting to make an argument that Casey Anthony’s life story is a valuable asset (6), even though it has not yet been written.
On top of that, Casey Anthony herself does not wish it to be sold (6). The trustee is attempting to sell the alleged asset in order to pay off creditors (9).
According to NBC News (6), in an April 4th court filing, Anthony's attorneys, David Schrader and Debra Ferwarda, challenged this motion stating, "The Trustee does not cite any law to support his contention that he can sell 'property' that has not yet been created...The Trustee’s Motion also creates a slippery slope that would have dangerous repercussions far beyond the scope of this case."
However, Anthony could have avoided the threat to her life story had she acted sufficiently ahead of time.
“The look-back period for pulling assets back into the bankruptcy estate to pay creditors is 10 years. That means that the bankruptcy trustee can sue for anything you, the owner, had owned in the past 10 years in order to pay creditors,” explains Mr. Beatrice.
“If assets were transferred into an irrevocable trust before that period, chances are that those assets would be in safekeeping for the beneficiaries of the trust.”
According to the look-back period, even if Anthony put her assets into an irrevocable trust in 2011 when she became a household word, the trustee likely would still have access to those assets to pay creditors with a judges clawback due to a fraudulent conveyance.
So, as odd as it may sound, Estate Street Partners suggests that when an irrevocable trust is being drafted, the creator of the trust might as well put their life story or any asset in the trust.
An irrevocable trust is basically a holding tank for assets that are managed by a trustee. This trustee must follow the instructions of the trust when investing, giving assets to beneficiaries, and paying off debts. In this way, the assets are no longer owned by the person creating the trust and after the look-back period ends, those assets are protected for the future.
“Irrevocable trusts are a great way to pass on assets to beneficiaries, because not only do they get the money out of one’s estate protecting the assets from lawsuits, bankruptcy and other tragic events, but they may also have great tax benefits,” advises Mr. Beatrice.
Although Casey Anthony cannot avoid the threat of sale of her life story, one who is setting up an irrevocable trust can and probably should, advocates Mr. Beatrice.
“Putting a life story in an irrevocable trust is simple,” clarifies Mr. Beatrice. “Doing so would only involve the attorney drafting the trust to put in language that the trust owns all rights to the creator’s life story.”
“Another advantage to having one’s story placed in an irrevocable trust is tax savings. As a CPA, I am always looking for ways to save on taxes and placing an asset with minimal value, but with great growth potential into an irrevocable trust can avoid all estate and gift taxes,” extols Mr. Beatrice.
“Depending on the outcome of this case, I suggest that everyone who decides they want an irrevocable trust, whether it be to secure assets for the benefit of children, grow assets estate and gift tax free, or being able to control assets from the grave, consider putting their treasured assets in their trust,” encourages Mr. Beatrice.
“One never knows if, when or how they may become famous or infamous as in the case of Casey Anthony.”
Visit MyUltraTrust.com to set up a DIY irrevocable trust plan.
About Estate Street Partners (UltraTrust.com):
Assets can be protected from frivolous lawsuits while eliminating your estate taxes and probate, and also ensuring superior Medicaid asset protection for parents and children with their UltraTrust® Irrevocable Trust. Call today at (888) 938-5872
1 - nydailynews.com/news/national/judge-decide-casey-anthony-life-story-auctioned-article-1.1312864
2 - articles.orlandosentinel.com/2013-01-28/news/os-casey-anthony-files-bankruptcy-20130126_1_zenaida-fernandez-gonzalez-zenaida-gonzalez-roy-kronk
4 - en.wikipedia.org/wiki/Death_of_Caylee_Anthony
5 - wesh.com/news/casey-anthony-extended-coverage/Judge-delays-decision-on-Casey-Anthony-life-story-sale/-/13479888/19674968/-/ovm24tz/-/index.html#ixzz2QWMYyot4
7 - reuters.com/article/2011/08/10/us-caseyanthony-idUSTRE77934O20110810
8 - articles.orlandosentinel.com/2013-01-28/news/os-casey-anthony-files-bankruptcy-20130126_1_zenaida-fernandez-gonzalez-zenaida-gonzalez-roy-kronk