This document discusses ways to protect retirement assets and nest eggs from creditors and predators. It outlines asset protection basics, including using exemptions, entities, and trusts to shield assets. Specific strategies covered for protecting retirement plans and beneficiaries include using trusts as IRA owners or beneficiaries, domestic asset protection trusts, and offshore trusts. The document stresses that while complex, asset protection for retirement funds can be achieved through careful planning.

1. Shielding Your
Nest Egg
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2. We Care Because…
• Help Our Clients
• Help Ourselves
• Assets Under Management
• Personal Liability Protection
• Personal Asset Protection
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3. Asset Protection Basics
• The Why
• Not everyone manages life well
• Creditors and predators
• Things happen
• It’s litigious out there!
• The point is to make it hard for a creditor
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4. Asset Protection Basics (cont.)
• The When
• When things are copasetic
• When is it too late?
• After the claim has arisen
• What happens if it’s too late?
• Fraudulent conveyance laws
• Possible repercussions
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5. Asset Protection Basics (cont.)
• The How
• Exemption Planning
• The law allows you to keep some of your stuff
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6. Asset Protection Basics (cont.)
• The How (cont.)
• Entity Planning
• Corporations and LLCS
• Spendthrift trusts
• Domestic asset protection trusts
• Nevada, Delaware, Alaska
• Offshore planning
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7. Retirement Plan Basics
• ERISA Plans
• IRAs
• Required minimum distributions
• Stretch-outs
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8. Retirement Plan Basics (cont.)
• Trust as owner
• Trusteed IRA
• Trust as beneficiary
• You can, you can, YOU CAN name a trust as
beneficiary!
• Valid under state law
• Irrevocable on participant’s death
• Beneficiaries are identifiable
• Certain documents to plan administrator
• All beneficiaries are individuals
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9. Asset Protection for the Plan Participant
• Exemption planning
• Code of Civil Procedure § 704.115
• Federal bankruptcy exemption does not apply
• Other exempt property
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10. Asset Protection for the Plan Participant (cont.)
• Entity planning
• LLC, corporation planning won’t work
• Trusteed IRA
• Domestic asset protection trust
• Offshore trust
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11. Asset Protection for the Beneficiary
• Traditional planning: the outright
distribution
• No asset protection
• Inherited IRA
• Potential for asset protection
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12. Asset Protection for the Beneficiary (cont.)
• Conduit trust
• RMDs are distributed to beneficiary
• Stretch-out only for the oldest beneficiary’s
life
• Creditors, predators can reach the RMDs
• The rest is safe
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13. Asset Protection for the Beneficiary (cont.)
• Accumulation trust
• Essential for special needs planning
• Stretch-out only for the oldest beneficiary’s
life
• RMDs are retained in trust
• Creditors shouldn’t be able to access
account
• Potential adverse income tax consequences
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14. The Moral of the Story
• It ain’t easy
• Other planning may be simpler
• Life insurance
• It can be done
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15. Thank You!
Questions?
70 South Lake Avenue | Suite 1000 | Pasadena, CA 91101
P (626) 696-3145
www.PasadenaLawGroup.com
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