The 10 Biggest Legal Mistakes Physicians Make When Titling Their Assets Among Their Spouse, Children, and Other Family Members
By Patricia Donlevy-Rosen, Esq.
Many physicians attempt to implement asset protection on their own by titling assets among their spouse, children, and other family members. Often in doing so, rather than protect the assets from the physician’s creditor, the assets are exposed to additional creditors, which causes family conflicts and raises gift and estate tax issues. Physicians should proceed with caution and seek experienced counsel when obtaining new assets or transferring title to existing assets.
Mistake 1 Not Getting Advice of Experienced Counsel
Mistake 2 Making Fraudulent Transfers/Conveyances
Mistake 3 Assuming That Transfer of Title to a Spouse Will Protect the Asset
Mistake 4 Assuming That Tenancy by the Entirety Provides Adequate Protection
Mistake 5 Giving Up Ownership or Control Unnecessarily
Mistake 6 Assuming That Transferring Title to Children or Other Family Members Will Protect Assets
Mistake 7 Assuming That Children or Other Family Members Will Be Willing and Able to Transfer Assets Back and Forgetting That They Can Have Their Own Liabilities
Mistake 8 Assuming That Children or Other Family Members Will Be Alive to Give Back Assets
Mistake 9 Neglecting the Gift Tax Ramifications of Transferring Assets to Children or Other Family Members
Mistake 10 Neglecting the Estate Tax Ramifications of Transferring Assets to Anyone Else (Including the Spouse)
The above has been excerpted from the SEAK text, The Biggest Legal Mistakes Physicians Make and How To Avoid Them