Law Offices of Steven M. Adler, PLLC
Adler Law E-Letter
November 2010

Steven M. Adler, Esq.
Steven M. Adler, Esq.

Law Offices of Steven M. Adler, PLLC
666 Old Country Road, Suite 605
Garden City, New York 11530
Phone: (516) 876-1105
Fax: (516) 794-0463

Happy Thanksgiving
Welcome to November's edition of the Adler Law E-Letter. Before we continue, Dolores and I would like to wish everyone a very Happy Thanksgiving.

This month, we are continiung with the last installment of our three part series on Asset Protection Planning.  We are also including an article on Long Term Care Insurance and another addition of Strange But True! 

If you have a question or concern with respect to any particular legal subject, please contact me or Dolores Jannuzzi, Esq. and we would be happy to discuss your topic in a future issue of Adler Law. In addition, if you know of someone who may be interested to read this newsletter, please forward it to them by clicking the "Forward Email" link at the bottom of this page.

Thanks and have a great day.

Steven M. Adler
Asset ProtectionAsset Protection Planning.
(Part 3 of 3) 

In last month's issue of Adler Law, we learned how to determine if you are an attractive target to creditors and we explained that if you wait too long to start an asset protection plan, it may already be too late to protect your assets.  This month, we will discuss various asset protection planning strategies you should consider incorporating into an asset protection plan of your own.

Asset Protection Planning Strategies:

There is no one asset protection planning tool or technique that universally protects all of an individual's assets, so a plan needs to involve a mix of various tools and techniques which depend in part on your specific circumstances.

The following asset protection strategies should be considered when formulating the proper plan for you.

1.            Right Business Entity Choice

Whether you own real estate, a professional practice or any kind of small business, it is imperative that you choose the proper form of entity because every customer, patient or tenant represents a potential liability, threatening whatever savings you have accumulated.

For example, a Limited Liability Company ("LLC") is generally the most convenient and flexible entity choice. An LLC also avoids many of the tax problems and the maintenance expenses associated with corporations. The law effectively insulates the owners of the companyfrom any liability produced by the business. In other words, your personal assets are not subject to the risks of a business operated within the LLC.

2.            Avoid Business Partnerships

Business partnerships are very risky.  Partnerships can produce huge liabilities for you which are totally unexpected and not your fault. As a co-partner you could be held responsible for partnership debts and any negligent acts of your partners. A business partnership expands the scope of your personal liability when you should be trying to limit your risks.

3.            Avoid the Personal Guarantee

Much of the protection which can be accomplished with a corporation will be lost if you give a personal guarantee of a corporate obligation. Sometimes a lender or a lessor will not require a personal guarantee if he or she can be persuaded that the business or proposed venture is sound.  If you sign a personal guarantee, you are placing all of your assets at the mercy of a particular business deal and you are undertaking a risk with odds much worse than those offered in most gambling casinos.

4.            Use Multiple Entities

Those of you who have more than one investment property or several types of businesses should use different entities to own each property or conduct each business. The goal is to insulate each separate property or business from liabilities produced by the other activities.

Physicians operating more than one clinic should never hold ownership in a single entity. Similarly, if you own several real estate properties, use different entities to hold each one.  If there is a lawsuit in connection with one of the properties, the others won't be endangered. The same logic would be applied if you owned properties and also performed property management services for others. You would want to separate the management business from the ownership of the properties.

Accordingly, the ownership of assets with a high risk of producing liability should always be separated from safe assets, such as cash or securities. These safe assets should not be jeopardized by a liability associated with your investment property, your business or your other risky assets.

Transferring Assets:

Whether the right asset protection strategy involves gifting assets or selling your assets to your new entities, it is likely that you will be transferring those assets to a Family Limited Partnership, a Limited Liability Company, an Asset Protection Trust, or some form of Irrevocable Trust.  Each has its own advantages and often all of these entities will be incorporated into the right asset protection plan for you.

Get Competent Advice:

Designing your overall plan and preparing the documents necessary for asset protection, tax efficiency, and estate planning must take place under the guidance and supervision of an attorney who specializes in these matters. A successful strategy involves a careful analysis of your business structure to make sure that potential liabilities are properly controlled with Dangerous and Safe Assets insulated from each other. The operation of your business or professional practice should be evaluated to minimize taxes through specially designed individual strategies. Asset protection and estate planning choices and alternatives should be presented to you and clearly explained so that you can make sound and informed decisions.

Once again, your asset protection plan must be created in advance of any claim or threatened litigation. Every state has laws prohibiting the transfer of assets to avoid paying existing or anticipated claims. If you make a transfer when you know or have reason to believe that there may be a case against you, the other party has the right to try to unravel your plan. Try to address your asset protection needs before difficulties arise in order to accomplish the best results.

If you need assistance or would like to discuss your personal situation, please feel free to call our offices at (516) 876-1105.

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We Provide:
Estate Planning
Asset Protection
Elder Law
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Corporate Law
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Personal Injury
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Long-Term Care Insurance


Long-term care provides the help you or a loved one needs to perform activities of daily living because of dementia or another form of cognitive impairment. In addition to custodial care, some people also need skilled nursing services. You can receive long-term care in a nursing home, assisted living facility, or in your own home.

The need for long-term care can arise at any time, regardless of your age. Older people generally use the most long-term care, but younger and middle-aged people sometimes need long-term care as well. Long-term care can be very expensive. $15,000 per month for a nursing home is not uncommon in the New York metropolitan area.  While home care may be less expensive than nursing home care, it is still very costly. Home care can include part-time skilled nursing care, speech therapy, physical or occupational therapy and home health aides.

Long-term care insurance can help protect you from the high costs associated with this type of care. Most long-term care policies pay a fixed dollar amount, which can range from $100 a day to $400 a day. In order to get the lowest rates, you should apply sooner rather than later. Your age and any medical conditions you have will affect your eligibility for coverage and how much it will cost. Under Federal law, you may also take certain income tax deductions for long-term care insurance premiums. In addition, some States may give a deduction or credit toward State income taxes for these costs.  
Traditionally, the annual rate of increase in the cost of long-term care services has risen more quickly than it has for other consumer services. This means the benefit you buy today may not be enough to cover higher costs in the future. Therefore, you should consider choosing a long-term care insurance plan with an inflation adjustment feature so that you can be protected against the rise in long-term care costs over time until services are needed.
Finally, it is important to note that if you have long-term care insurance, you may not need to liquidate all of your assets to fund care costs. Moreover, you may not need to transfer all of your assets to your children or to a trust in an attempt to qualify for Medicaid. With long-term care insurance, you can keep control over your assets and protect them for your heirs.

For more information regarding long-term care insurance or to receive a no cost estimate from a top notch insurance agent, please contact Steven M. Adler.
Strange but True! 

A 55-year-old woman was seriously injured in October near Defuniak Springs, Fla., when -- and alcohol was involved -- she fell from a motor home traveling on Interstate 10. She had walked to the back to use the rest room, discovered that the door was stuck, and pushed against it -- to learn too late that it was the exit. [Northwest Florida Daily News, 10-19-10]


A 75-year-old man in Levis, Quebec, became the latest person to fall victim to his own protective booby trap. He had apparently forgotten the exact location of the trip wire he had connected to a shotgun to deal with trespassers, and he was killed. [Toronto Star, 10-22-10]


A 24-year-old Muslim woman was strangled in Newcastle, Australia, in April when the bottom of her burqa became tangled in the wheels as she was driving playfully at a go-cart track. [Daily Mail, 4-8-10]


A 45-year-old, out-of-town man was killed in a street robbery in Oakland, Calif., in July after he became distracted while typing a location into his cell phone's map program to find his way to a job interview. The appointment was at Google Inc. [KOVR-TV (Sacramento)-AP, 7-18-10]


Horatio Toure, 31, was arrested in San Francisco in July after snatching an iPhone from a woman on the street and bicycling away. Unknown to him, the woman was conducting a real-time demonstration of global positioning software, and thus Toure's exact movement was registering on her company's computers. He was arrested within minutes. [San Francisco Chronicle, 7-21-10]

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The Law Offices of Steven M. Adler, PLLC are committed to providing their clients with the highest level of professional legal services at reasonable prices. Steven M. Adler, Esq., along with the rest of his law firm's highly competent support staff, gives all of his clients the personal attention and the legal expertise which they are entitled to receive. The Law Offices of Steven M. Adler, PLLC takes pride in the quality, effectiveness and efficiency of their legal services.
Law Offices of Steven M. Adler, PLLC
666 Old Country Road, Suite 605
Garden City, New York 11530
Phone: (516) 876-1105
Fax: (516) 794-0463
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