Why Asset Protection Planning Is Important Today

By Anita Ortega

The kind of assets one has today can define their tomorrow. However, there are situations where creditors can repossess these assets. So, wise people have strategies to protect their assets against liens, repossession or lawsuits. In most cases (and depending on the financial situation of an individual), asset protection planning may require some knowledge on Bankruptcy Laws, Estate Planning laws as well as Tax laws.

Just to be clear, the asset protection plans are never a means to forfeit your responsibility to the creditors or taxman. Rather, they are meant to secure your property, money, retirement accounts and even cars from creditors in a legal way. In fact, the decision to protect assets should be influenced by your lifestyle, net worth and short term or long term financial goals.

It suffices to say that individuals with the potential of undergoing insolvency (due to the risks attached to their investments) need the program the most. It is worth reiterating that even for these individuals; this program is not a means to hide an individuals wealth. In fact, it should not give way to misappropriating funds from a trust.

In spite of the common belief, the asset protection laws do not just serve individuals and their families. In essence, this process covers more. Apart from the business entities (such as family limited liability companies), a dynasty bank can be protected as well. Special and secret savings can also be part of a plan. Better still, comprehensive insurance plans are also eligible for protection.

Individual arrangements and family trusts make another group of assets eligible for protection. Your plan may also involve offshore corporate trust and investing schemes in some cases. In some jurisdictions, credit shelters and such like can be protected legally.

Doing everything early is the best ways to conduct planning. You do not have wait until you sense a lawsuit or receive a demand letter before commencing the protection plan. Such late plans may lead to complete loss of property after a expensive legal battle.

If done properly, this kind of strategy has a number of benefits. First, it helps you to categorize your liquid assets in a way that creditors cannot pursue them. In fact, the more liquid assets you have in checking account, for example, the easier it is for creditors to recover it. Planning also reduces the chances of lawsuit as most of your property is protected. You should know that creditors can only sue you for unprotected property and the fewer such are the better for you.

Another benefit of property plan is that it fills in the gap left by your insurance cover. It is a fact that every insurance policy has a limited scope thus would never cover all your assets. With a plan to protect your assets, you can cover all the important properties and protect them against creditors. Last but not least, you asset plan guarantees the safety of your money even if you were to lose your job. In fact, under a good plan, you are never susceptible to claims (no matter the nature of financial constraint you end up in).

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The Essence Of Having A PAN Card

By Ashis Jain

The Indian tax system requires that everyone pays income taxes and any other taxes that are listed in different regulations. The implementation of this law has made it necessary to widen the tax net in order to get as many people as possible to pay taxes. The introduction of the PAN card in the tax system was the best way to net as many people as possible to pay different taxes and adhere to many other regulations. The card is so mandatory that you may not be able to do some things if you do not have it hence making it very essential.

This 10 digit alphanumeric unique identity is what is used to identify people for tax purposes. It is designed to be used in many other transactions where your identity is key to making the transactions authentic. The idea is to keep every financial transaction that comprises of a tax element in track with the main goal of preventing tax evasion.

Should you earn any taxed earnings in India, you need to pay the necessary taxes even if you are a foreigner who pays taxes in India. Companies should also pay taxes when they have a turnover with a minimum of Rs 5 Lakh in the last year before application. Getting this type of number will make sure that you are tax compliant since failure to do so may result to various penalties.

If you wish to start being compliant, you begin by determining whether you should use form 49A or Form 49AA to apply. You are able to confirm whichever you qualify for by going to income tax department website of India after which you can apply online in the approved website. You need your copy of national ID or passport and evidence of your address and pay the necessary application fees.

Getting the permanent account number enables individuals to undertake different financial activities including payment of taxes, filing income tax returns as well as in minimizing the taxes they pay. This is actually the number that shows the tax department whether you are compliant to tax laws or otherwise. You will not be able to file for returns or pay direct taxes if you lack the number.

You have to pay taxes when doing different transactions like in the purchase of immovable property worth least Rs. 5 Lakh. Everybody transacting in selling or purchasing an automobile, besides a two wheeler should also disclose their PAN number during the transaction since taxes may need to be paid. Therefore, getting this type of card becomes mandatory to be able to conduct such transactions.

The card is also mandatory if you are transacting amounts exceeding Rs. 25,000 in a hotel, restaurant, and travel to a foreign country. Additionally, payments of over Rs 50,000 to the Indian Reserve Bank when buying bonds are also subject to tax, charged on the number. This makes the card very essential in everyday life in India.

You will also need a PAN card when buying shares exceeding Rs. 50,000 in value. The number will also be needed when depositing over Rs 50,000 in a bank within 24 hrs. Payment of at least Rs 5 Lakh to buy bullions or jewelry also has to be supported by this number.

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Some Facts About Asset Protection Trust

By Anita Ortega

There are many people who do not really understand exactly what this thing is all about. Asset protection trust is basically a signed contract between two parties. One party signs off his or her assets to another person who will take care of them in their behalf. These are mainly the beneficiaries of the property in the event that the said person ceases to exist.

The beneficiaries of a particular person will be well taken care of in the event that this person happens to pass away. In real essence, they hold the perfect solution to when someone wants to hold a certain amount of property for use in the future. As opposed to saving some money to be used for future purposes, when saving through this means, one is assured that the resources are available for use at a later date.

In addition, it enables one to take some action at an early stage in their lives. In the traditional times, people often used to wait until the last minute before thinking about their future. With this new development, people can start planning and securing their future as early as they wish to. It all depends on the time when they will be ready to do that.

Waiting until you become old eventually before you start making such plans could affect you negatively. By this time, the judgment is usually impaired and therefore you are not be able to make good and sound decisions. This means you will not be in a position to know exactly what it is that you need secured and what will be beneficial to you in the future.

In the event they change, the person who is giving away the rights can easily revoke the agreement and the property will revert back to him. However, there are also some things that cannot be placed under the revocable properties category. Such things include limited liability companies. Such a company will be protected even in the international laws.

Furthermore, you will have a peace of mind knowing that nobody in your family is against you or the decision that you made since they all contributed towards making it as well. There are some cases whereby people do not consult their family members before signing such documents. The results of such a scenario are very demotivating.

With all their wealth, it ensures that they will not suffer in the slightest way possible. The main reason as to why people often engage in this activity is the fact that they wish to have a good future. In other terms, they are securing their future by ensuring that they live well. For the people who have set up huge companies, they really need such kind of an arrangement.

Despite this slight set back, the important thing to note is that the bulk of the property will still remain in your hands which is a good thing. At least you cannot be taken back to ground zero or where you started from. The beneficiaries of these items are usually handpicked by the owner.

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Facts About Asset Protection Trusts

By Anita Ortega

An asset protection trust is believed to be embodied by specific legal policies. Unlike other units, it is designed to provide monetary service on discretion. The main duties of asset protection trusts involve barring their beneficiaries from the outcomes of tax evasion, bankruptcy and divorce issues. They are entirely directed by the policies, which also define their area of work.

It is the duty of the asset protection to distinguish between the trust asset enjoyment and the legal ownership of the same. The most important aspects of the trusts are the beneficiaries. They are the beneficial owners of the assets at the trust, but not their legal owners. In this manner, these firms are mainly interested in planning for having their assets protected.

The plans are designed to protect the trust assets from claims by the creditors while checking the regulations of concealment and tax collection. As such, the ability of the creditors to file claims against the trustees is directed by the interests of the beneficiaries in the trust. Therefore, interests of the trustees must also be limited by the trusts. This is put in place to bar creditors from auctioning the assets of the trust.

They also have a spendthrift clause that is used to ensure that the beneficiaries do not use all their interests to cover their debts. However, the clause is also directed by certain exceptions. These include; support payments by the court order, self-centered trust and cases where the real creditor is the sole beneficiary as well as the trustee.

For example, the self-centered trusts rarely exist in many jurisdictions across the globe. Even though, there is still United States and nations that allow the usage of the spendthrift while also protecting the self-centered trusts. In the United States, for example, Alaska became the first state to allow such trusts to be protected. They are generally governed by specific laws and normally referred to as Domestic Asset Protection Trust.

It is required that they must be spendthrift and irrevocable, appoint one resident trustee, bar double roles of settlers from also acting as trustees, and establishing a trust administration of the respective state. The jurisdiction laws used in the management of protection trusts are designed by settlers. These laws and regulations, however, can be contradicted by two major exceptions.

For instance, the states may not respect any law from another state that does not recognize their public policies. Similarly, if the trust posses a real property then it will only be governed by jurisdiction law that is its situs. In addition, the Full Faith and Credit clause states that every state needs to recognize the laws of other states. It thus means that if a state does nor respect the protection of DAPT and goes ahead to file claims against a creditor, then he/she has the backing of the law to oppose it.

Similarly, the DAPTs efficacy could as well be challenged under the Supremacy clause in the constitution. These jurisdictions are under the United States Asset Protection Trust because of the non-American settlers. There are certain matters that apply to the USAPT as a result of the non-US settler.

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Importance Of A PAN Card

By Ashis Jain

A Pan card is used for numerous applications and it is usually important especially to people who file income tax returns. It is used in the tax system as well as in investments to carry out various transactions. It can serve one purpose or more depending on the person using it. A PAN card allows you to enjoy a number of merits as it serves many purposes.

This card is important in the taxation department as it usually helps relevant tax authorities track all the transactions tax payers have carried within a financial period. This enables them to retrieve records that enable them calculate and allocate tax rates of various businesses. This prevents a situation of under taxation or over taxation that could probably result to losses that would affect your business in return.

This card may also be used to serve the same purpose as the national ID card. It normally has a photograph, the name and the address of the individual holding it. For this reason, it is very important as it can be helpful where you need to provide you ID and you do not have it at that moment. You can produce this card instead as it is a nationally accepted proof of identity.

It is usually used to calculate the tax rate of every individual, thus determining the tax levy a person is required to pay. For this reason, absence of this card can lead to one being taxed at a higher rate than expected. Therefore, it is important for you to hold a card to avoid such cases that leads to higher taxation that could affect your business.

Misuse of this card is minimal. This is because, even if your card is stolen or lost, names and address may change but the number of the card remains the same. Thus, this reduces cases of this card misuse.

The Pan card enhances your creditability before the eyes of financial institutions enabling you to qualify for different types of loans. It as well enables you open a demat account that normally allows you to sell or purchase property and many other assets. During purchases or sales involving immovable assets like land, it would be vital as you are needed to quote its number for security purposes.

The card ensures that you carry a fraud free transaction without the fear of one losing his or her money or property. Use of this card assures you of a transparent transaction. Therefore, its use should be enhanced for security reasons especially for people who undertake transactions involving a lot of money.

This card as well enables you to operate bank accounts that are vital and beneficial to your business. Whenever a person is depositing a large amount of money to the account, he or she is needed to provide this card to ensure that the transaction is done in the right manner. The card is also needed when you are carrying out transfer of money from one account to another bank account to enhance security of money in the bank.

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Why You Need A PAN Card

By Jamal D White

A PAN card is an essential document for a variety of reasons. The card; mostly a ten-digit alphanumeric number issued by the income tax department is crucial when filing tax returns and conducting various transactions that requires one to identify themselves. Anyone who has this card can use it for a variety of purposes.

The card is essential when conducting various banking and post office transactions. For instance, it is one of the most important documents when depositing Rs. 50,000 or more in any account with post office savings bank or a banking company. It is also important when buying bank drafts, orders and bankers cheque in cash form more or equal to Rs. 50,000.

Another main use of the card is when making various transactions to banks and other financial institutions. The permanent account number helps banks to determine whether certain people can qualify for certain services. It is also used to determine whether anyone applying for credit cards from certain banks is eligible for the card.

If the expense for your overseas tour exceeds twenty five thousand rupees, you would also need to show this card before making the payment. This payment is mostly designed to cater for issues with foreign exchange, fare and payments to the travel broker. Most restaurants and hotels would also require you to show this card when making payments beyond twenty five thousand dollars.

People also need the card when purchasing or selling immovable properties equal to Rs. 5 lakhs or more. Before the transactions are completed, the buyer is required to get the PAN of each person who claims to own such properties. For instance, if more than one person owns the property, the property buyer should make sure they get the PAN of all the people who claim a share on such property.

If you decide to purchase or sell an automobile, you would also need to disclose this card. The good thing is however that not all types of automobile that need the disclosure of the permanent account number, as it is only for vehicles that more than two wheels. Companies would also not need to show their permanent account number as they are already known and their companies already have an outstanding way via which they pay tax.

In the case of paying for mutual funds, you would also need the PAN card. People looking to get their company shares and company debentures need also to show this card. In addition, before someone is able to get bonds from a bank, they would need to disclose their permanent account number.

It is also one of the main essential documents for anyone looking to install telephone connections. This can be either connections related to cellular phones or other phone systems. The reason for using the PAN card is to make sure that issues of fraud and tax evasion are kept as low as possible. It also ensures the people making the transactions can be sure of obtaining positive results from such transactions.

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Essential Documents When Applying For A Pan Card

By Wanda Rosner

There are numerous instances when people are required to disclose their permanent account number among which include; during the purchase or sell of immovable assets, when applying for credit card and when depositing money to a bank account. Some restaurants, hotels, trip advisors and phone installers also require people to disclose their pan cards before paying their bills. When applying for a pan card, people are supposed to submit various documents.

One main document required when applying for a pan card is your photograph. The approved photo size should be 3.5 cm long by 2.5 cm width. It is supposed to be of a decent color that gives clear visibility of your face. Applicants are advised to attach this photo in the given space within the given application form.

Copies of matriculation or school leaving certificates are other essential documents. In case you lack these two documents, you can attach copies of any other certificates that were issued by a recognized education organization. The use of these documents is to help the tax department proof the education levels of the applicants.

When applying for the permanent account number, you would also be required to attach copies of your broadband connection, landline telephone, consumer connection or utility bill cards. It is also advisable for applicants to attach their credit card statements, bank statement or even depository account statement. The reason behind the tax department requesting for these documents is to ensure that they can easily verify the address of such applicants.

Candidates would also be needed to submit a copy of their birth certificate attached to the application form. The tax department requests candidates to make sure their certificates were obtained from a Municipal Authority or other offices that have the mandate to offer birth certificates. In case you do not have a birth certificate, you may as well attach copies of your domicile certificate, marriage certificate or perhaps driving license.

You may also need to provide copies of elector card or ration card, which have a clear photo of your face. You may as well decide to provide one of your identity photos that was obtained from a right institution. By providing these documents, you would help the tax department have easier time when trying to verify your identity to ensure that they do not just send the card to anyone else but to the suitable person.

It is also important to put your signature within the given box in the application. The signature is supposed to be a print of your left thumb and not any other finger. Sometimes, some people may be tempted to apply two or more pan cards with their personal plans. However, when you put a print of your left thumb within this application form, the tax department would keep your information to make sure that you can never apply for another card.

Applicants are also required to pay certain fees to cater for the processing of the pan card. The income tax department requires applicants to pay through a demand draft, credit card, net banking, cheque or debit card. After the payment, the applicant is supposed to mention the acknowledgement number on the backside of the demand draft or cheque.

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