Michigan Estate Planning Lawyer Blog

Physicians are constant targets of malpractice lawsuits and other legal actions, including employee lawsuits for sexual harassment, unfair termination and discrimination, business related lawsuits and legal issues arising out of unwise investments.

Given this environment along with many plaintiffs lawyers looking to cash in, many Michigan physicians feel like they are in the legal cross hairs. That is why so many physicians are looking to strong legal counsel on their estate planning and asset protection matters.

Asset protection for Michigan physicians involves a few different aspects. First asset protection involves the adoption of advanced planning strategies which place assets beyond the reach of future creditors. Asset protection planning for physicians discourages lawsuits by lowering a client's financial profile so that they become a far less attractive target for the plaintiff's lawyers. Also, there is the benefit of enhanced leverage in negotiations if a lawsuit is field.

Understand that asset protection planning for physicians, while it's confidential, it is not based on secrecy or fraudulent transfers, it does not involve hiding assets, and is not a type of tax dodge.

Last Friday in Lansing, Michigan I attended an asset protection seminar that included planning for physicians. The presentation was part of the Michigan WealthCounsel forum which is organizing some of the top Michigan estate planning lawyers.

California asset protection attorney Jeff Matsen, Esq., was the key note speaker for the event. We covered keys that every Michigan business owner, professional, doctor, dentist and real estate investor need to know about asset protection.

We were instructed on a modular approach to protect wealth through a series of trusts and business structures. Through the training our Michigan asset protection law firm can help clients preserve and protect their business and personal assets through a sophisticated process of perfectly legal Michigan asset protection planning.

A common question we see is "how can I protect my house from creditors and lawsuits in Michigan?". One easy from of Michigan asset protection for the house is through marriage and holding the asset properly on your title.

Michigan has created a special form of joint ownership called Tenancy by the Entireties. Tenancy by the Entireties is a form of joint ownership only available to Michigan husband and wives where they are viewed as one entity under Michigan law. What this means is that neither husband or wife may convey the property without the consent of the other.

So, if husband is sued, as long as husband and wife hold title to the house jointly, with Tenancy by the Entireties, then the house most likely would be protected from the lawsuit.

It is important to have an attorney review how title to the property is stated on the Warranty Deed or Quit Claim deed.

A QTIP, or qualified terminable interest property trust, is a type of trust that limits the surviving spouse's access to and control of the trust property.  What happens is that the spouse has direct access to any income from the trust assets for life, but the trust's principal is left to someone else, typically the children.  The QTIP trust controls not only the next beneficiary, but also who the following beneficiaries are, all the while providing for the surviving spouse and potentially providing marital deduction planning as well.

Here are some scenrio's where a QTIP trust may be right for you:

• Concerned about surviving spouse remarrying and then providing assets to the new spouse (marrying the pool boy or secretary).
• Concerned abour the surviving spouse benefting someone other than the children (disinherting the children).
• Concerns over creditor attacks against the surving spouse.
• Concerns that the surving spouse may be vulnerable to poor financial decisions.

The QTIP trust is a great trust to not only plan for the marital deduction, but also provide spousal protection and ensure that your assets remain in the bloodline.

-Christopher J. Berry, Esq.
Bloomfield Hills Wills and Trusts Lawyer

Tenants by the Entirety or Tenancy by the Entireties is a form of Michigan ownership that is common for real estate.  It means that each spouse has an undividable right to use the whole property.  A creditor cannot for the sale of either spouses interest because to do so would affect the other spouse's enjoyment of the whole property.

This is an advantage in Michigan because the marital residence can be protected from many creditors.  However, keep in mind, that that tenants by the entirety does not shield the residence from joint creditors.  In other words, if one spouse is sued, the house can remain protected.  If both spouses are sued, the house may not be protected.

-Christopher J. Berry, Esq.
Michigan Asset Protection Attorney