The 13 Secrets of the Rich or Informed ™
Overview List of Devices1. Revocable Living Trust (or Living Trust); 2. Pour-Over Wills; 3. California Advanced Health Care Directive (Durable Power of Attorney); 4. Durable Power of Attorney for Asset Management; 5. Family Limited Partnership (FLP); 6. Irrevocable Life Insurance Trust (ILIT); 7. Children's Trust; 8. Charitable Remainder Trust (CRT); 9. Limited Liability Company (LLC).; 10. Will (Small Probate); 11A. The Corporation: "C" Corporation; 11B. "S" Corporation; 12. The Business or Land Trust; 13A. Other Devices or Secrets. 13B. Converting Non-Exempt Assets to Exempt Assets; a. Private Retirement Trust (PRT); Individual Retirement Accounts (IRAs); Qualif
Converting Non-Exempt Assets to Exempt Assetsa. Private Retirement Trust (PRT). The PRT is one of the most powerful devices used to enhance an estate and business plan which protects the wealth, equity or assets transferred into this irrevocable trust for purposes of retirement. The authority of such a trust is a create of local state statute, which varies state to state. For example, in California, under its Code of Civil Procedure Section 704.115(b), all amounts held, controlled, or even distributed by a private retirement plan are exempt. This means that you could even transfer certain assets to a PRT during litigation or after a judgment. The California code states in part as follows:
704.115. (a) As used in this section, "private retirement plan"