Seeming to have no assets......

[therapy23]

Is there a legal way to appear to have little or no assets come early Jan?

I don't mean running out and spending everything on a boat and not having enough to run it.

I mean a way to keep control of what is "not" really mine any more.

I have heard talk of living trusts but do not understand how it is done for the IRS and all the welfare folks that want pieces of my pie.

Any real knowledge out there?

[PBzeer]

Sure, just sign it all over to me. I'll take care of it for ya

[bubb2]

Send me your signed check. I will fill in the rest of the blanks. Problem solved!!!!

[sailingdog]

You'd probably want to talk to a good estate planning lawyer about this... although, I would mention that hiding assets from discovery in many legal proceedings is illegal and can get you in a fair bit of trouble...

[scottyt]

from what i understand you do is to form a trust in a state where trusts dont get taxed. transfer everything to the trust, ie house car, etc etc. then you live in the trust's house, drive its cars etc. you can receive some money from the trust per year with out paying taxes on it, but any income you have will still be taxable. the nice thing about it is there is no estate taxes if/when you die the trust just loses an owner. also you are not able to be sued to take your car etc, because you dont own it. the problem is anything you own money on ie mortgage you cant transfer with out the trust buying it. so it means all new loans, with no credit score, yes the trust can build one but till then your screwed

edit the other problem with the trust buying stuff is you still owe capital gains if you make a profit

[bubb2]

I believe what you are talking about is a irrevocable trust. You need to talk to a attorney who specializes in this sort of thing. Did you get that check mailed off to me yet?

[PBzeer]

And don't forget ..... the only bureaucracy in the government that displays any efficiency is the IRS.

[therapy23]

Originally Posted by PBzeer

And don't forget ..... the only bureaucracy in the government that displays any efficiency is the IRS.

I think you are mistaking efficiency with power (and resultant induced fear).

A 30% "wrong answer" rate does not seem too efficient to me.

[US27inKS]

Originally Posted by scottyt

from what i understand you do is to form a trust in a state where trusts dont get taxed. transfer everything to the trust, ie house car, etc etc. then you live in the trust's house, drive its cars etc. you can receive some money from the trust per year with out paying taxes on it, but any income you have will still be taxable. the nice thing about it is there is no estate taxes if/when you die the trust just loses an owner. also you are not able to be sued to take your car etc, because you dont own it. the problem is anything you own money on ie mortgage you cant transfer with out the trust buying it. so it means all new loans, with no credit score, yes the trust can build one but till then your screwed

edit the other problem with the trust buying stuff is you still owe capital gains if you make a profit

Not exactly true. I still owe money on my house, and I have transferred it into my trust. It was actually a very easy transaction, with very little paperwork. The mortgage co. didn't get a say in the matter. The same with my commercial property. Actually my commercial property is owned by my LLC, and the LLC was transferred into the trust. But my cars, bank accounts, house, business, everything belongs to my trust.

In fact this is one strategy for assuming a non-assumable loan. If you get the current owner to put the property in a trust, then name yourself trustee, you get the loan without the mortgage companies permission.

See an estate planning attorney.

[PBzeer]

therapy - I didn't say they are efficient, they just seem that way when compared to the rest of government.