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RE: Trusts & Personal Liability

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Jordan...

Looks like you have a better memory than me!

David L. Fisher  SE  PE
Senior Principal 
Fisher + Partners Structural Engineers inc
372 West Ontario 
Chicago 60610         
 
312.573.1701
312.573.1726 fax
312.622.0409 mobile
www.fpse.com         

David L. Fisher  SE  PE
Director
Head of Design and Construction
Cape Cod Grand Cayman Holdings Ltd
75 Fort Street
Georgetown Grand Cayman BWI
mobile 312.622.0409
www.ccgch.com











-----Original Message-----
From: Jordan Truesdell, PE [mailto:seaint1(--nospam--at)truesdellengineering.com] 
Sent: Thursday, June 16, 2005 1:58 PM
To: seaint(--nospam--at)seaint.org
Subject: Re: Trusts & Personal Liability

The retirement accounts are safe, and probably have nothing to do with a 
trust. If I remember correctly, after paying his legal team he had no 
assets except his NFL retirement (that's a defined benefit plan, right?) 
and what he had put into qualified retirement plans.  He may have a lot 
of money in there, but it's all technically retirement money, and all 
protected.  I would expect that he wouldn't be able to change that, 
either, without implications wrt the judgment.

Living (revocable) trusts are generally used for estate planning 
purposes.  The assets may as well be in my name personally from a 
liability standpoint - it doesn't really protect any of it. Irrevocable 
trusts are just that - irrevocable. Unless an internal triggering event 
occurs, the letter of the trust cannot be broken. The danger of an 
irrevocable trust which is worded to liberally is that it may not really 
shield the assets properly (ability to sell principal/assets for 
distribution at the trustees discretion). The other downside is that 
irrevocable trusts are considered business entities, and pay high income 
taxes as a result.  They are, however, generally safe from attachment 
(via litigation or other means) when prepared correctly. 

I have a revocable trust that specifies how everything gets passed to my 
daughter, and when. My assets will go into a irrevocable trust for her 
until she reaches a certain age, at which time she gets everything free 
and clear.  For us it makes sense to set her up this way, as she is the 
only grandchild on both sides of the family, and an only child - she'll 
end up with a concentration of wealth rather than the usual dilution of 
wealth across generations. They can place assets directly into her trust 
(skipping our generation, for tax purposes).

On a side note...someone mentioned a while back about putting a business 
automobile in the name of a corporation to shield them from some 
personal liability.  Unfortunately, the only time that will happen is if 
a non-owner employee of the business is driving the car when the 
accident occurs.  If the owner is driving, both the owner (personally) 
and the business will be at risk. 

David Fisher wrote:

>I don't doubt it...
>
>I just know that when the Goldmans and the Browns
>Won their civil suit after he was acquitted in the criminal
>Trial, they were unable to touch any of his assets, retirement money,
>annuities
>Etc., because they were in a "trust"
>
>Obviously, a gross over simplification of the subject by me.
>
>  
>

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