I really need some help in trying to protect my assets. My husbands business is failing and we owe over $100,000 in payroll taxes. I will be negotiating with the IRS to pay these off with a payment plan and am paying all his current payroll taxes on time.
My question is we own our house and it is currently our only asset, I was thinking of putting it into a trust for my children so that if our business does fail and we are unable to pay our payroll taxes the IRS will not be able to take the house. Has anyone gone through this before? Do you have any suggestions on what type of trust or how we should try to protect our home?
Thank you
You *really* really really need to talk to a lawyer. Laws vary in many states but most don't take kindly to 'hiding' assets in a trust prior to defaulting. However, some states do have a homestead law whereby your house is off limits to a certain extent. You need legal help pronto.
Yep you need a lawyer who is very well versed in tax laws and has experience with the IRS.
I would contact Home Credit Law Center at ###-###-####. www.homecreditlaw.com and speak directly with the lead attorney Brian Linnekens
Check into homesteading your house. I don't think the protection is total, but it may help.
I would certainly get a lawyer, but unfortunately, I think it's too late. Usually you can only protect assets before a business starts to fail. But a good tax lawyer will be able to tell you for sure. Good luck.
Oh, I wish I could help, but I don't have a good answer for you. That is because (as somebody accurately stated) laws differ by state. There is a federal bankruptcy law but many of the exemptions (like a homestead exemption) are still dependent upon state statutes. Also, you need to provide more information -- is your house co-owned by you and your husband? (or in his name only?); is your husband's business incorporated? (more protection for you guys) And trust laws are very complicated; I've never seen someone put their house into a trust for their children, as such things are not done for many reasons -- for example, you'll have to appoint a trustee for the trust and then you won't have any control over your house. Fundamentally, I do agree that it will not look good trying to shield assets on the brink failure. So talk to a good lawyer, not just about taxes, but possibly filing for bankruptcy. Best of luck.
