We don't know for sure, and we probably never will, but it appears Steve Jobs has protected his estate, to the extent he can, through living trusts. A living trust is a trust established and funded during one's lifetime. Lots of trusts are established during the maker's life, but lots remain unfunded, meaning nothing was ever put into the trust. When that happens, the trust is like an empty basket -- good for nothing.
Forbes magazine reported on October 7 that real estate records from 2009 show that Jobs and his wife transferred three pieces of real estate into two separate trusts. This doesn't mean that he transferred all of his assets, such as his Disney stock, with an estimated value of $4.4 billion, because transfers of property other than real estate do not need to be recorded in public records. But it's likely he did. Someone as smart and as private as Steve Jobs probably took the proper steps to minimize his potential estate tax and protect his heirs from the publicity that would surround probate of his estate.
There is a long list of celebrities who failed to properly plan their estates. As a result, they unnecessarily lost a good part of their estates to the IRS. Some of these are Jimi Hendrix, James Brown, Steig Larsson (author of The Girl With the Dragon Tattoo), Gary Coleman, Sonny Bono and Michael Jackson.
Monday, October 10, 2011
Thursday, October 6, 2011
Mortgage Rescue Scams
With the mortgage foreclosure crisis hitting more people, scammers are out in force. One of the newer scams involves fraudulently attaching a mortgage to someone else's bankruptcy. Here's how it works.
Scammers know that one of the most powerful tools in the bankruptcy tool box is the automatic stay that prevents a creditor from taking any action against the debtor or property of the debtor's bankruptcy estate. The scammer approaches a borrower facing foreclosure and gives them the pitch that for a small fee, say $300-$500 per month, they scammer will "work with" the lender to prevent bankruptcy. The scammer tells the borrower that she needs to convey a small percentage, even 1%, of her house to another person. This other person is someone in bankruptcy, usually in another state, and has nothing to do with the scammer or the borrwer. In fact, this person is completely unaware of the scammer. But by transferring a small portion of the borrower's property to the bankrupt debtor, the borrower's property is now "property of the estate" of the innocent debtor. The scammer uses this to claim the protection of the automatic stay against the bank trying to foreclose on the borrower.
Sometimes the debtor becomes aware of this sudden new interest in real property that he never had before when the bankruptcy trustee accuses him of failing to disclose all his property. This usually happens when the bank asks for relief from the automatic stay so it can commence foreclosure against the borrower. If this happens, the scammer tells the borrower she needs to convey another fractional interest to another unknowing debtor somewhere else and the process starts again.
The bottom line is this for borrowers: It's unlikely that any of these so-called "rescue firms" can really legitimately help you. Beware of anyone who tells you that for a monthly fee they can stave off foreclosure.
Scammers know that one of the most powerful tools in the bankruptcy tool box is the automatic stay that prevents a creditor from taking any action against the debtor or property of the debtor's bankruptcy estate. The scammer approaches a borrower facing foreclosure and gives them the pitch that for a small fee, say $300-$500 per month, they scammer will "work with" the lender to prevent bankruptcy. The scammer tells the borrower that she needs to convey a small percentage, even 1%, of her house to another person. This other person is someone in bankruptcy, usually in another state, and has nothing to do with the scammer or the borrwer. In fact, this person is completely unaware of the scammer. But by transferring a small portion of the borrower's property to the bankrupt debtor, the borrower's property is now "property of the estate" of the innocent debtor. The scammer uses this to claim the protection of the automatic stay against the bank trying to foreclose on the borrower.
Sometimes the debtor becomes aware of this sudden new interest in real property that he never had before when the bankruptcy trustee accuses him of failing to disclose all his property. This usually happens when the bank asks for relief from the automatic stay so it can commence foreclosure against the borrower. If this happens, the scammer tells the borrower she needs to convey another fractional interest to another unknowing debtor somewhere else and the process starts again.
The bottom line is this for borrowers: It's unlikely that any of these so-called "rescue firms" can really legitimately help you. Beware of anyone who tells you that for a monthly fee they can stave off foreclosure.
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