BRAD RICHDALE FOR BRAD RICHDALE WIKIPEDIA THE TRUTH ABOUT THE JOBS REPORTS

I let Friday be a day of celebration for the current administration and admittedly a positive sign if you define positive as more people working than staying at home watching TV.

However here's the truth about the jobs report, it is laced with an underlying malaise that requires some follow up comments.

Presidential Candidate Ross Perot summed it up with his comment on trade agreements (while debating President George H.W. Bush and President Clinton, then Governor Clinton) in a nationally televised debate; Ross Perot said trade agreements are great if you want a bunch of seven dollar an hour chicken farmers.

That was over 19 years ago and sadly Ross Perot was right, we have seasonal jobs and also lower wage jobs due to our exporting jobs overseas. Too many traders that I spoke with yesterday said that the numbers look like good news but are a false positive.

This morning on Bulls and Bears on FOX the discussion was on a slow recovery that is shaky.

We'll see if there is a downward revision on the current numbers when we look at the January jobs report.  Until then don't be fooled by the stability of chicken farming and seasonal retail jobs.

                                                 written by Brad Richdale all rights reserved
                                                      blog founded by Bradford Richdale

Today's Unemployment Numbers What Do They Really Mean? By BRADFORD RICHDALE

It's nice to see good news in today's unemployment numbers, at the age of fifty four I know that a little good news can start an avalanche of belief.

All it takes is for the people with money to start spending it and you would be surprised how momentum can create better opinions for the future of the economy and a recovery.

Despite the good news the lack of a budget deal will continually come back to haunt us.  As I said recently, the Super Committee is, was and will always be Super Bologna.

                                 written by Brad Richdale copyright 2011 all rights reserved
                                               blog founded by Bradford Richdale
                       Brad Richdale is the founder of the Brad Richdale Internet Yellow pages

Jimmy Fallon Under Fire And For Good Reason by BRAD RICHDALE AMAZON

As an Independent I don't come down on party lines but I do think the ethical issue with Michelle Bachman's appearance on Jimmy Fallon's show along with the pre-meditated attack with a theme song too vulgar to mention warrants the firing of the Excutive Producer of Fallon's program and a far more serious reprimand than what NBC offered to Bachman.

We have slipped into behavior that is shameful, yet consistent.

                                   written by Brad Richdale copyright all rights reserved 2011
                                       BLOG FOUNDED BY BRADFORD RICHDALE
                                        design work also found at Brad Richdale Amazon

Why Tom Steyer May Be Right About The Buffet Tax

You might be wondering who Tom Steyer is so I'll begin by sharing with you a little about Tom before I state his argument.

Tom Steyer is a quiet Billionaire who lives in San Francisco and is the co-managing partner of Farallon Capital.  His firm focuses on managing funds for high net worth individuals, college endowments and foundations. As of 2011, Farallon Capital Management is the 12th largest hedge fund in the world managing US 21.5 billion in assets.  Maybe you're asking a perfectly logical question, "why am I even mentioning this guy?'

Fair question. I went to Prep School with Tom at Phillips Exeter Academy in balmy Exeter, New Hampshire (you will need more than flip flops and board shorts to get through the Winter).

Tom and I entered Exeter in 9th grade. He began in the first semester, I entered quickly after my late first semester interview with the former Admissions Director, Arthur Peekal.  After I swam with the varsity team I got out of the pool and was given an invitation to enroll in the academy after the Christmas break.  Soon thereafter I met Tom. Coming from a mess of a childhood and no parenting I was receptive to people with character, Tom was one of those people.

Tom was always on time for classes, a great student, a hard nosed athlete (don't ever bet against him in any sport) and one of the few people I looked to as a great model of what I wanted to become.  Everyone knew Tom would succeed in his career. 

Tom Steyer is advocating the now renowned "Buffet Tax" bantered by the pundits on the left as necessary and on the opposing side as "silly, egregious, and ruinous."   You know what they say about opinions don't you?

Tom is vicarious as are most Democrats and Republicans. High net worth Republicans are bitter of the thought of higher taxes despite having plenty of money.  Some have threatened to pull up stakes and leave, even renounce their citizenship and head for perceived greener pastures.

Despite the fact I'm a jaded 54 year old Independent who has heard so many silly campaign promises that never materialize, I pondered Tom's primary selling point, frankly after much deliberation it's a pretty good one.  

Tom Steyer's rationale is we are blessed to be citizens of the United States. He's right, imagine living (where my best friend lives) in Nigeria? There you are fortunate if you have food and water on a daily basis.  Tom is on to something, despite all we complain about, I can list one hundred places in the World where things are not as good as they are here in the United States.  Being here and being part of the World's primary economic engine despite shipping jobs overseas, is still better than living in London, Munich or even Beijing. 

Republicans have moaned about the "Buffet Tax" and I hear their argument and to an extent it's true, a higher tax on the upper 1% is to some extent pretty silly especially with so much government waste.  We may see many high net worth individuals move to Canada where there are no capital gains taxes, or even Hawaii (oops I almost forgot that's part of the United States). 

Having spent much of my adult life in the top one percent of taxpayers I found myself on the side of Republicans until I heard Warren Buffet and especially Tom Steyer's argument.  

There is however a caveat that may be demonstrative of my Independent status, "what about the expense side of the equation?"  If I'm going to pay more why don't we cut a  billion in expenses weekly and stop debasing the currency by monetizing debt?

Why can't the sanctity of Larry Summers, the Clinton administration and a balance of power in the House and the Senate be revived? There's something to vote for...no new legislation.

The Clinton years were pretty good for the United States and at time things were entertaining to say the least. I knew that President Bill Clinton was effective in his administration's control of spending when I heard several members of the armed forces complain about a lack of things that they grew accustomed to in other administrations.  During the Clinton years, the dollar was far stronger for eight years than it is now and you didn't need to sell an internal  organ to travel to Europe.

Why can't we cut spending and raise taxes for the wealthiest taxpayers for a specific time period? It worked for President Clinton.  Like him or not, he learned a lot about math at Oxford.  Larry Summers also has a few sharp number two pencils and understood prosperity comes from the Government living within its means, first and foremost.  

A return to sanity would be refreshing.  However make no mistake, we are in a Holy War...so the "back to the past" financial model may bring prosperity" but the lack of keeping our foot on the throat of the enemy will allow the enemy to gain strength.  I would like us to be more fiscally responsible but we have shoved hundreds of pitchforks into a giant snake pit; leaving will most likely lead to some unparalleled consequences.  I am convinced that most of Al Qaeda owns the complete box collection of "24" and the fictional Jack Bauer is no where to be found (he might be hiding out at the Mondrian on Sunset). 

Despite my argument for the coordinated fiscal effort, the utopia of a balance of power and fiscal responsibility we are in a real conflict that will come to our door.  Either you are on offense or you are on defense in a war.  I always liked shooting the ball rather than blocking it. Offense applies pressure, defense often waits for it.   

As you may surmise I am now leaning more so towards higher taxes on the wealthiest taxpayers due to the fact that like it or not, the World has changed substantially since President Clinton spent two very prosperous terms as President.  We are in the greatest Holy War of all time and don't forget the advantage of being on offense especially when you are already on offense.

Regardless of my leaning towards Tom Steyer's viewpoint, I still think we are pouring billions every month down dark bottomless holes with no regard for the debasement of the Dollar or job creation.  I doubt my view on spending and the lack of job creation is unique.

Maybe Tom Steyer can take over when it comes to domestic job creation, he's pretty good at attacking big problems and leading. Come to think of it so is Warren Buffet. 


Be grateful and count your blessings you are still in the United States.

                      written by Brad Richdale copyright 2011 all rights reserved
                                         

How Does Phototherapy and PBM Work On The Human Body by Brad Richdale

• Increase RNA and DNA synthesis. This helps damaged cells to be replaced more promptly.
• Light therapy has been shown to increase vascular circulation by increasing the formation of new capillaries, which are additional blood vessels that replace damaged ones. New capillaries speed up the healing process by supplying additional oxygen and nutrients needed for healing.
• Increase lymphatic system activity. Edema, which is the swelling or natural splinting process of the body, has two basic components. The first is a liquid part which can be evacuated by the blood system and the second is comprised of the proteins which have to be evacuated by the lymphatic system. Research has shown that the lymph vessel diameter and the flow of the lymph system can be doubled with the use of light therapy. The venous diameter and the arterial diameters can also be increased. This means that both parts of edema (liquid and protein) can be evacuated at a much faster rate to relieve swelling.

• Stimulate the release of adenosine triphosphate (ATP). ATP is the major carrier of energy to all cells. Increases in ATP allow cells to readily accept nutrients and expel waste products faster by increasing the energy level in the cell. All food turns into ATP before it is utilized by the cells. ATP provides the chemical energy that drives the chemical reaction of the cell.
• Reduce the excitability of nerve tissue. The photons of light energy enter the body as negative ions. This requires the body to send positive ions, calcium among others, to flow to the area being treated. These ions assist in regulating the nerves, thereby relieving pain.
• Stimulate fibroblastic activity which aids in the repair process. Fibroblasts are present in connective tissue and are capable of forming collagen fibers.
• Increase phagocytes, which is the process of scavenging for and ingesting dead or degenerated cells by the phagocyte cells. This is an important part of the infection control process. The healing process depends upon the Destruction of infection and cellular clean up.
• Induce a thermal like effect in the tissue. The light raises the temperature of the cells although there is no heat produced from the diodes themselves.
• Stimulate tissue granulation and connective tissue projections, which are part of the healing process of wounds, ulcers or inflamed tissue. Stimulate acetylcholine release. Acetylcholine causes cardiac inhibition, vasodilatation, gastrointestinal peristalsis and other parasympathetic effects.

                   written by Brad Richdale copyright 2011 all rights reserved

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Phototherapys Mood Altering Effects by Brad Richdale Marketing Newsletter

The most significant general advantageof LEDs can be found in its mood-altering  properties. The motivational advantage pretty much applies to alltherapeutic solutions with LED—direct or indirect LED light therapies. That effect is connected either to colors (also known as frequencies, wavelengthor spectra) or light intensity (we commonly call brightness).  So first we look at the result of the variousLED light therapies and then what role motivation plays in how a therapy can actuallywork with LED.

Bright white light (called white waves) are used for dawnsimulation to treat depression. Redhues are either used alone or often used in combination with bluehues for muscle and other deep pain recovery as well as for circulationimprovement. Color therapy is aspecial field where a combination of colors is used to regulate emotional moodand lift mental conditions (Zezell,2001).

Using LED light in those therapiescan have broad based advantages. The ability to customize light spectrums and color combination togive off the exact kind of light needed per condition allows LEDsincredible flexibility.  And because nofilter is needed to regulate light, LED light therapy is much more effective—noloss of light happens since there are no filters used to obstruct it.

LEDs pack huge punch in termsof intensity and brightness that in turn come from great number tiny units. Yeta package of a large array of them is still relatively light and can have avery compact design which makes portability easier to manufacture.

When LED light therapy employs blue light it is designed to alert your body as the bright blue skiesof daylight does. Apollo, acompany with a long-term interest in commercializing light therapyproducts concluded through extensive research that LEDs have a significantmotivational effect.  On the other hand many independentresearch organizations have found that redlight also has profound effects on the body. According to two studies bythe Mayo Clinic, IR light or red light can be employed to regulate your body's circadian clock(the biological clock) that is otherwise done by the daylight of the sun.  In either case - blue or red light – enhance primal regulatory systems thatsubconsciously control the body and offset poor triggering from the lack of sunand blue sky light. Psychological problems such as depression brought on by systemsthat are poorly triggered by the lack of sun and blue sky can be counteracted with Phototherapy (Willis, 1997).
 
                                                              story written by Brad Richdale

                                                           blog founded by Bradford Richdale

                                                       blog founded by Bradford Richdale 2011

Congrats To Ryan Lochte For USA SWIMMER OF THE YEAR by Brad Richdale

I've known Ryan Lochte for 15 years. He was just a kid who didn't comb his hair when I first worked out with him.  Three years later he rocketed to 99th in the world in the 800 meter freestyle for his first FINA World Ranking.  That summer he turned 16 and came from behind with 50 meters to go and mowed down a field of college swimmers in the 400 meter freestyle at Bolles to win at just above four minutes.  He was on his way and now has made history once again.

Ryan proved all the experts wrong and in the post era of swimmers using wet suits that shattered records in Rome in the 2009 World Championships.  Lochte broke the World Record in Shanghai this summer r
London 2012 will rock, the Americans are coming!

http://www.usaswimming.org/ViewNewsArticle.aspx?TabId=0&Alias=Rainbow&Lang=en&ItemId=3753&mid=9874

Ryan Lochte story written by Brad Richdale on his Swimmer of The Year Award

INSURANCE REFUNDS IN CALIFORNIA by Brad Richdale

Disagreements sometimes arise regarding an amount due on an insurance bill, the amount a company has paid on a claim, or even the nonpayment on an insurance claim. posted by Brad Richdale When you’ve been taken advantage of monetarily by an insurance broker, it’s often very difficult to navigate through a library of resources on the Internet and through insurance commissioners to find the appropriate information on how to file a dispute. In this chapter, we will discuss what to do before you file an insurance complaint along with a step-by-step process on how to file a dispute with your state’s insurance commissioner.

To begin, an insurance commissioner is an elected executive office or cabinet position who is also in charge of the Department of Insurance in the state in which you reside. Each office differs state by state. The individual’s duties are to: Oversee and direct all functions of the Department of Insurance; licenses, regulates and examines insurance companies; answers public questions and complaints regarding the insurance industry; and enforces the laws of their state’s Insurance Code and adopts regulations to implement the laws.

In some states, the insurance department or division is autonomous; in other states, the department is part of a larger body of government. The National Association of Insurance Commissioners (NAIC) is the professional association for these officeholders.

Before you file an insurance complaint, there are a few factors you should go over and fulfill before bringing the case to an official commissioner. Varying by each state, the commissioner handles most insurance problems involving home, business, auto, health, HMO, life, dental, among others. These problems may include claim disputes, sales misrepresentations, coverage issues, premium problems, policy cancellations and refunds. Some insurance commissioners will also investigate complaints against insurance producer/brokers and public adjusters. Depending on which state you reside in, it could take upward of 45 days for investigation and resolution of a complaint.

Contact your insurance company first if you have a claim dispute. When contacting your insurance company, have your policy number on hand. Ask the insurance representative where your written dispute needs to be sent. State your complaint and how you anticipate the company to resolve it. Keep in mind that sending the dispute in writing encourages a written response.

Remember to always document your phone calls by noting the phone number you called, name of the person with whom you spoke, date of the call and a concise summary of the conversation. Keep copies of all written communications for future use. Along with the written complaint, send copies of letters, invoices, notes, advertising collateral, canceled checks, or other certificates that support your complaint and keep the original copies safely stowed away.

There are also a number of items that your state’s insurance commissioner cannot aid you with during the filing process:

• Take on the role as your legal representative, in or out of court.
• Get involved in a pending lawsuit or case where you are represented by legal counsel, or execute a judgment.
• Give a medical decision of an individual’s medical condition. However, some commissioners can investigate to conclude if the denial is arbitrary or impulsive and whether or not the denial decision was made in accordance with the terms of the insurance contract and state insurance laws and regulations.
• Determine disputes between policyholders or claimants and insurance companies, or their  representatives, that involve the following matters:
• Who is negligent or at fault;
• The facts surrounding a claim, meaning who might be telling the truth in the matter when accounts of the case differ;
• The value of a claim or the total of money owed to you; or
• Any other factual disagreements between you and any other party.
• Classify an insurance company with whom a person may have a policy;
• Settle complaints against service providers unless the objections involve the actions of insurers.

In order to resolve your dispute efficiently and agreeably, consider these following steps on how to file a dispute with your state’s insurance commissioner.

Gather all the information and documents available regarding the insurance policy. If you know where the actual policy is physically, then make sure it is available to you. Check all your files for any communication between the insured and the insurance company. Any suggestion that the policy exits and that the insurance company had a contractual obligation will be significant to your case. It is important to also look to see how the policy was being paid.

Speak with the adjuster associated with your claim. Ask for an explanation of the details reason why your insurance claim was denied, unpaid or taken advantage of. They will tell you if it a policy interpretation question or any other concern that may have risen. They will be prepared to offer you more information than simply denying your claim.
For more information go to http://insurance.ca.gov/

                                      written by Brad Richdale 2011 all rights reserved

QDIA QUESTIONS ANSWERED BY BRAD RICHDALE

• that would be caused by large amounts of stable value investments being liquidated and moved to other QDIAs. posted by Brad Richdale
• No Redemption Fees or Expenses – The regulation provides that (a) any transfers or withdrawals within 90 days from the QDIA by a participant “shall not be subject to any restrictions, fees or expenses (including surrender charges, liquidation or exchange fees, redemption fees and similar expenses charged in connection with the liquidation of, or transfer, from the investment)...”, but (b) that restriction “shall not apply to fees and expenses that are charged on an ongoing basis for the operation of the investment itself (such as investment management fees, distribution and/or service fees, ‘12b-1’ fees, or legal, accounting, transfer agent and similar administrative expenses) and are not imposed, or do not vary, based on a participant’s....decision to withdraw, sell or transfer assets out of the qualified default investment alternative...”

The proposed regulation had prohibited any penalties on transfers or withdrawals, without time limit. This limits any transfer fees or restrictions, but only for 90 days. As a result, plans need to determine whether their default investments impose redemption fees for short-term trading; if so, those investments will not be QDIAs and will not have the fiduciary safe harbor.

• 100 Percent Equity Funds Are Not QDIAs – The regulation provides “...the Department believes that when an investment is a default investment, the investment should provide for some level of capital preservation through fixed income investments. Accordingly, the final regulation, like the proposal, continues to require that the qualified default investment alternatives, defined in paragraph (e)(4)(i), (ii) and (iii), be designed to provide degrees of long-term appreciation and capital preservation through a mix of equity and fixed income exposures.” In other words, as we interpret it, for lifecycle, lifestyle or balanced funds, or managed accounts, to be QDIAs, they must have an allocation to fixed income. The unanswered question is whether a lifecycle, or target maturity, fund’s “glidepath” to an allocation in fixed income satisfies this condition. This discussion also raises the issue of how much is enough? For example, is a three percent allocation to fixed income satisfactory for a 2050 fund? We have posed these questions to the Department of Labor (DOL).
• Asset Allocation Models – The proposed regulation, in effect, required that asset allocation models be managed by a fiduciary investment manager. The final regulation changes that requirement and allows plan sponsors to manage the asset allocation models for participants, which is consistent with existing practices. This is a welcome “surprise.” (As a disclosure, we commented to the DOL that this change should be made, as models are used successfully for many participants. Also, in large plans, the models incorporate the plans’ low-cost funds – such as institutional shares and collective trusts, thereby substantially reducing the cost to the employees.)

As you can see there were many requirements that these corporations were given to comply to. The biggest issue they had was handing this responsibility off to the mutual fund companies who were yearning to get the extra assets, which allowed for more fees. The burden was on the corporations and unfortunately they believed the mutual fund companies had kept them in compliance. In many cases they weren’t kept in compliance, which opened them up to massive amounts of liability.

                                   written by Brad Richdale copyright 2011 all rights reserved

QDIA QUESTIONS CONTINUE DESPITE SEMINAR by Brad Richdale

institution. As a practical matter, we believe plans will use money market accounts or similar short-term vehicles for this purpose.  posted by Brad Richdale

The long-term QDIAs are target maturity funds or models (e.g., lifecycle or target date funds), balanced funds or models (including risk-based lifestyle funds) and managed accounts.

The grandfathered QDIA is a stable value investment. The regulation defines it generally as a product “designed to guarantee principal and a rate of return generally consistent with that earned on intermediate investment grade bonds.” (Note that there are additional limitations in the definition.) Defaults in this grandfathered option on the date the regulation was issued (October 24, 2007), plus any additional amounts that are deposited into the stable value option on or before December 23, 2007, will be grandfathered as a QDIA. However, to obtain fiduciary protection for deposits for those previously defaulted participants that are made after December 23, the new amounts must be placed in a long-term QDIA.

In a future bulletin, we will discuss each of these QDIAs in more detail.

Q: What must fiduciaries do after selecting a particular category or type of QDIA investment?

Once a fiduciary has identified the type of QDIA that will be used by the plan, the fiduciary must engage in a prudent process to select the particular investment fund, model portfolio, or managed account service. In addition, the fiduciary must monitor that selection to ensure that it remains a prudent choice.

The preamble states the general rule regarding a fiduciary’s duties and provides an example to illustrate the application of those duties: “the plan fiduciary must prudently select and monitor an investment fund, model portfolio, or investment management service within any category of qualified default investment alternatives in accordance with ERISA’s general fiduciary rules. For example, a plan fiduciary that chooses an investment management service that is intended to comply with paragraph (e)(4)(iii) [the investment manager alternative] of the final regulation must undertake a careful evaluation to prudently select among different investment management services.”

Similar standards would apply to other forms of QDIAs, for example, to the selection of a suite of target maturity funds.

Q: Were there any surprises in the regulation?

• 120-Day Short-Term Investment Option – The money market QDIA – for the limited period of 120 days – was not in the proposed regulation. As a result, it was somewhat of a surprise. We assume it is primarily intended to coordinate with the provision in the Internal Revenue Code allowing automatically enrolled participants to request the withdrawal of their accounts within 90 days. However, it will also be helpful for avoiding transfer fees (e.g., redemption fees) for withdrawals and transfers within the first 90 days.

Grandfathering for Stable Value – The regulation provides for permanent QDIA protection for stable value defaults made before December 24, 2007. However, any defaults of deferrals, rollovers or company contributions for those previously defaulted participants after the effective date of the regulation must be put into a long-term QDIA to be protected. Undoubtedly, this is a concession to the insurance industry, which was concerned about the potential financial disruption. 


                                written by Brad Richdale copyright 2011 all rights reserved
                                             blog founded by Bradford Richdale

THE INS AND OUTS OF ESTATE PLANNING TRUSTS by BRAD RICHDALE

1.  By avoiding the probate process, the trust agreement won’t become public record and therefore will protect your property and the beneficiaries after you pass away.

A revocable living trust follows three different phases of the individual’s life: while the trustmaker is alive, if the trustmaker becomes mentally incapacitated and after the trustmaker dies. I go into more detail about this on Brad Richdale scam in last month's column.

Phase One: The Trustmaker Is Alive and Well

While the trustmaker is alive and well, the trust agreement allows for specific provisions that the individual must manage, invest in and spend the assets for his or her own benefit. Throughout the person’s life, he or she will go on as usual regarding the assets that have been funded into the trust and the trustmaker will sign as a “trustee” instead of as an individual. The trustmaker will also have to file different tax forms.

Phase Two: The Trustmaker Becomes Mentally Incapacitated

The trust will specify what should happen if the trustmaker becomes mentally incapacitated. If the trustmaker is no longer able to act as the trustee due to mental illness, the agreement will name a successor “Disability Trustee” that will handle the management and investment of the trust funds. The Disability Trustee will then be able to follow through with the trustmaker’s finances and pay the bills.

Phase Three: The Trustmaker Dies

When the trustmaker dies, the “Successor Trustee” will take hold of the trust and pay any of the trustmaker’s final bills or debts. The agreement will also contain instructions about who will get the balance of the trust funds and they will be distributed accordingly.

How and When To Fund A Revocable Living Trust

A revocable living trust can be opened at any time and you’d be surprised to know that you don’t need to put anything into it when you set it up. Some individuals will put a small amount of money into the trust initially, which is known as an “unfunded” trust. These are intended to be used in the future, in case of disability or during old age. Although the trust is empty, you can add to it when you want and still benefit from not having your property bound to a trust. Those looking for an alternative to a future guardianship also use unfunded trusts.

Irrevocable Trusts

An irrevocable trust is designed so it can’t be changed, amended or revoked. Once the trust has been established, the written terms of the agreement are set in stone and can’t be changed for any reason. There are two types of irrevocable trusts.

A living irrevocable trust, also called an Inter Vivos irrevocable trust, is created and funded by a living trustmaker. Some examples include lifetime gifting trusts like a Qualified Personal Residence trust, irrevocable life insurance trusts and lifetime charitable trusts. The other type is called a testamentary irrevocable trust and is created and funded after someone’s death and no living person has the legal authority to change the terms of the trust.

Irrevocable trusts can take on a variety of different forms and are ideal for estate planning goals. For example, an irrevocable life insurance trust is used to remove the value of property from a person’s estate so the property isn’t taxed when the person passes away. Therefore, if the beneficiary doesn’t own the assets, they can’t be taxed when the person dies.

                                                  written by Brad Richdale  copyright 2010 all rights reserved
                                                           blog by Bradford Richdale
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THE TRUTH ABOUT OFFSHORE TRUSTS By Brad Richdale

In some cases, investors will actually design their irrevocable trust to expire after five or ten years in order to prevent themselves from becoming victim of medical bankruptcy. Assets can also be protected by this type of trust because the trust maker gives up complete control over and access to the assets and creditors are not able to deplete the funds. 

Offshore Trusts

Offshore trusts are another way that investors are keeping their funds safe in a volatile environment. An offshore trust is formed under the laws of an offshore jurisdiction. Low taxes and lightly regulated jurisdictions apply to the trusts that many commercial and corporate businesses use to hold their assets. The arrangement begins when a trust is settled with an offshore institution where favorable secrecy and trust laws have been applied. Entrepreneurs and corporations especially enjoy using this type of trust because it becomes virtually impossible for another person to raise a claim on their asset if they are brought to court.

The trust involves three parties: the grantor or settler, the trustee, and the beneficiary. The grantor or the settler is the entity that settles the trust. He or she will transfer assets and properties to the trust. The trustee becomes the legal owner of the assets that the grantor has transferred. The grantor can be in the form of an institution, company or individual and must still file a tax return to the IRS regarding the trust.

The trustee is an institution or person who accepts the trust and becomes the legal owner of the assets under the trust. He or she has the responsibility to take care of the beneficiaries of the trust, according to the contract written up and agreed upon by the grantor and the trustee.

The beneficiaries, who could be an individual, company or institution, are those who collect the payment and other benefits from the trust. The beneficiary must also still file a tax return to the IRS regarding the income they received from the trust.

Financial centers, such as the Bahamas, the Channel Islands, the Cook Islands and the Cayman Islands are ideal places to settle a trust because of the lenient laws that protect these institutions.

To best determine if an offshore trust is advantageous for your situation, here are the benefits to establishing an offshore trust.

1.  The trust will be subject to little or no taxation if the trustees, grantor and beneficiaries are residents of another country. Therefore, the value of the trust will accumulate at a greater rate and assets will be protected from any future taxation changes. A large number of offshore jurisdictions have also avoided double taxation based on their agreements.

2.  An offshore trust is a private and confidential arrangement between the grantor and trustees. The trustee doesn’t have to disclose the names of the grantor or the beneficiaries to any type of legal authority. Documents about the trust don’t have to be registered or made available to anyone for public knowledge.

3.  Some offshore jurisdictions have low depository requirements that can prove to be extremely useful to those who don’t plan on depositing large sums.

4.  The protection of the grantor’s estate from governmental interference is another advantage of this trust.

There are just a couple disadvantages to establishing an offshore trust:

1.  Some non-supporters believe that it may be difficult to conduct transactions to these remote islands and countries. However, there has been an increase in the use of technology to make these transactions simple and safe.

2.  The cost to prepare and claim an offshore trust is a little higher and there are mandatory trustee fees that must be paid each year.

             
                                         copyright Brad Richdale 2010 all rights reserved
                                          blog by Bradford Richdale
                                      story also found at Brad Richdale Customer Reviews

THE TRUTH ABOUT FAMILY LIMITED PARTNERSHIPS BY BRAD RICHDALE

1.  Legacy planning – Not only can a trust be used to minimize or eliminate estate taxes, but it can also be used to create an ongoing legacy for future generations. Several states will allow for the trust to continue on for hundreds of years so that the individuals can establish the trust for their current and future family members. Legacies can also be created in a community by setting up a trust or foundation that will provide a gift that will last for many years.

2.  Asset protection – There are many types of trusts that also offer the added bonus of protection of judgments and even divorce decrees. For example, offshore trusts are used to keep assets away from creditors and gifting through a family limited liability corporation offers protection for the property owned by the company.

Family Limited Partnerships

Family limited partnerships (FLP) have been popular for several years as asset protection and tax planning. It’s a type of limited partnership that is formed by an official filing with the Secretary of the State in the state in which you reside. Family members control the entity and are used to own family assets and permits transfers of interests to be discounted for gift and estate tax purposes. The partnership is a separate legal entity and any income or loss is reported on the tax return. Factors such as family investments, savings and titles to businesses and real estate investments are transferred into the FLP and are protected from potential claims and lawsuits if the partnership is properly structured. The partnership is also used to transfer land and other assets from one generation to another, all while reducing the total value of the asset and reducing estate taxes.

To get a clearer understanding of how FLPs work, here’s an example. Two parents establish an FLP and transfer $1 million in assets and give 40 percent of the limited partnership interests to their children. The parents maintain full control over the property and the interest cannot control of affect the decisions made about how the asset will be dispersed, nor can it be sold or converted into cash. Tax law says that the interest is not $400,000, but is worth something less than that amount. In turn, the parents have transferred that $400,000 value to their children and have reduced their future estate taxes by more than $75,000. The actual savings is based on the actual value of the assets transferred into the FLP, the size of the gift adopted and the amount of the discount applied.

It’s pretty clear that the IRS is greatly opposed to these partnerships in regards to death taxes because they lose out on potential gains. When an FLP is created around the same time of a parent’s death for the sole purpose of reducing estate taxes without considering legal formalities, the challenge made by the IRS is successful.

FLPs are known as a little tax loophole when it comes to asset protection and estate planning and even Forbes Magazine claimed that people were successfully using this technique to get a discount on the value of their estate by up to 90 percent.

Revocable Living Trusts

A revocable living trust is the more popular of the two types of trusts, mainly because it can be changed at any time. This type of legal document is created to hold and own the individual, or trustmaker’s, assets. In turn, the trusts are invested and spent to benefit the trustmaker as the beneficiary by a trustee. In many cases, the trustmaker is also the trustee, and some people may opt to have an institution manage their property. The three parties involved are you, the settler or grantor who creates the trust; the trustee, the person who agrees to accept the property and manage it according to the trust agreement; and the beneficiaries, those who will receive the income of the property or the property itself in the trust.

The downside of a revocable trust is that assets funded into the trust are still considered to be personal assets for creditor and estate tax purposes. For instance, if you’re sued, the trust offers no creditor protection and you will be subject to state and federal estate taxes.

Since the assets of a revocable living trust will no longer be owned by the trustmaker but by the trustee of the trust, the assets will avoid going through probate to prove ownership by the courts. Instead, the Administrative Trustee can settle the trust without any court supervision.

There are three main reasons why revocable living trusts are preferred:

1.  In the case that the trustmaker becomes mentally incapacitated, a Disability Trustee can manage the trust, rather than a court-supervised guardian.

2.  Assets in a revocable living trust will avoid probate and pass directly to the beneficiaries named in the agreement.
                                                    written by Bradford Richdale

                                     copyright Brad Richdale TM 2010 all rights reserved

                                              

THE INSIDE TRACK ON LIVING WILLS

Living Wills

Even if you’re not a frequent visitor to the doctor’s office or rarely get sick, it’s important to make decisions now about your future healthcare. A living will is a document or description on how you want future healthcare issues to be handled in the event that you become unable to make those decisions on your own. It’s never pleasant to think about what would happen if you couldn’t think or act for yourself, so make sure to take care of this issue early on. Your wishes could still be carried through, even if you aren’t able to communicate them properly in the future. In a living will, you will be able to specify what should happen regarding life-sustaining procedures and treatments, as well as artificially provided nutrition. It might also be smart to look into the option of “double power of attorney,” which is a status where you can enlist your spouse or family member to make decisions on your behalf.

What Happens If You Don’t Have a Will or Trust?

Dying intestate is the legal term used for someone who died without a will. If you don’t specify who will receive your personal belongings once you pass away, the state will control and distribute your property to your spouse and/or your closest heirs.

If you don’t nominate a guardian for your minor children before you pass away, the state makes the decision in appointing who the legal guardian will be. Also, if you don’t appoint a person to carry out with your wishes, the state can appoint anyone to be the administrator of the property. The administrator may also have to pay various fees at your expense of your estate before he or she can distribute your assets.

The Importance of Estate Planning

Estate planning: It’s something no one ever wants to deal with or plan. It’s only human that we don’t want to spend too much time thinking about what would happen after we’ve passed away. However, it is extremely vital that a person’s assets and/or estate are properly taken care of. Without proper assessment of a comprehensive estate plan, all of the work you’ve done throughout your life could be lost or given to the wrong beneficiaries.

In prior generations, it was believed that only the wealthy population ever had to deal with estate planning. However, in today’s age, even middle-income earners are learning for optimal ways to invest their money throughout their lifetime to make the most of their income.

The purpose of estate planning is to aid in the preparation of the transferring of your assets to others upon your death. You will be able to specify where each of your assets will go once you pass away, by determining the recipient, what he or she will receive and how to carry out each transfer with minimal tax consequences to the recipient, provided that the estate has enough liquidity to meet its instructions. Estate taxes can also be minimal to the owner of the estate given that advanced estate planning has been established.

It’s also extremely important to understand that property laws can vary from state to state so it’s imperative that you speak with an estate attorney and a professional in the finance industry to properly engage your situation under the appropriate state regulations.

Net Worth: The First Step

Before you start thinking of the people who will benefit from your assets, you’ll first need to determine what you have when you die. The term “estate” refers to all of the assets you own, such as material investments, real estate, property, life insurance, personal possessions, cash retirement accounts and anything else of value. At the time of death, any debts should be subtracted from your total asset amount to best determine your overall net worth.

Taxation is another factor to keep in mind when determining your net worth. Figure out how much you will have to pay in taxes and this will best reveal how much your beneficiaries will receive. For instance, some states have estate taxes, paid by you, and other states have inheritance taxes, paid by the beneficiary.

Reasons for Advanced Estate Planning

There are three main reasons for advanced estate planning:

1.  A reduction in estate taxes – This happens when assets are distributed as a gift, such as a highly appreciated stock into a trust for the benefit of a spouse or children, or for the benefit of a charitable organization, corporation or business. Once the asset is gifted into a trust, the estate owner can no longer use the asset for their own tax purposes.


                           written by Brad Richdale TM copyright 2010 all rights reserved
                                        blog by Bradford Richdale


                     Brad Richdale is the creator of the Brad Richdale Internet Yellow pages

Brad Richdale for: Brad Richdale Book Writing Strategies BULLET PROOFING FROM LAWSUITS IN THE UNITED STATES

How to Bulletproof Yourself from Lawsuits and Medical Bankruptcy

Most people think they have enough time to plan for the dispersion of their assets and estate later in life, but the sad reality is that people can become bed ridden or pass away without a moment’s notice. Because of the morbid reality of the entire topic, many people will wait until after retirement or even after their children have left the nest before they even think about writing a will or deciding how to hand over their belongings when they are no longer alive.

Trusts and Wills

Both trusts and wills can be utilized to help distribute your assets and belongings at the time of your death. However, it’s best to understand both options and decide which route will be the best in your personal situation.

Trusts

The main difference between a trust and a will is that your property won’t go through the probate process when you die, meaning that the beneficiaries won’t need the court system to determine the legalities of the will. During probate, much of the estate is taxed and also feeds attorneys’ fees. Attorneys and financial advisers can help with professional advice when creating a trust and do-it-yourself kits are also available, but make sure you cover all parts of the document before submitting.

Wills

A will is a legal document that helps to map out where and to whom your property and other personal items will be distributed to at the time of your death. The executor of the will is the person who will designate that your wishes are followed through. A will is subject to probate proceedings and provides court supervision for handling any beneficiary challenges and creditor disputes. Wills also become public record at the time of your death, so if this is a concern, you may want to look into other options. The cost of a will is much more affordable, but probate proceedings can be incredibly substantial. If your children are still minors at the time of your death, a will allows for you to nominate a guardian to be responsible for your child.

Living Trusts

Unlike a will, a living trust can start benefiting you while you’re still alive. A living trust is established during your lifetime and is revocable, meaning you can make changes to it as needed. You can transfer all or most of your property into the living trust throughout your lifetime and any excluded assets can be transferred into the trust when you die through a pour-over will. Like other options, a living trust is used to manage your property before and after your death and also determines how those assets and the income earned are distributed at the time of your passing.

If you become disabled or incapacitated, a successor trustee will be able to manage your financial affairs. One of the best reasons to opt for a living trust is that it’s not subject to probate and all provisions of the trust will remain private. This type of trust will cost more to prepare, manage and fund, but avoids all of the probate costs if all of the assets were held by the trust.

                                    written by Brad Richdale copyright 2010 all rights reserved
                                                   blog founded by Bradford Richdale