ASSET PROTECTION / BANKRUPTCY

If you have been looking to form a California, Delaware and/or Nevada Corporation/LLC, then look no further! Our firm offers legitimate tax reduction planning customized to your line of business, financial planning services, & affordable pricing. (Wyoming and Arizona entities also available!)

We will advise you and educate you regarding the Pro's and Con's of both Corporations and LLC's, and financial traps that differ from state to state. Once we decide type of business entities is right for you, we will customize and file your Articles of Incorporation with the Secretary of State (with 2 hour expedited service available for Nevada corporations!) and begin your road to the riches.


Provides separate and distinct Sub-LLC's (or "series" or "cells") within one single LLC entity formation to hold maintain asset segregation and protection!
*** Please visit our “Inc./LLC” section for more details!


An irrevocable life insurance trust (an "ILIT") is an irrevocable trust created for the principal purpose of owning a life insurance policy. As with any other trust, the insurance trust is a contract between a grantor and a trustee to administer certain property, in this case an insurance contract, for the benefit of named beneficiaries. The insurance trust, like other irrevocable trusts, cannot be rescinded, amended, or modified in any way after it is created. Once the grantor contributes property to the trust, he cannot later reclaim ownership of the property or change the terms of the trust.

One of the primary reasons executing a life insurance trust is estate tax considerations. If an ILIT is properly structured, the death benefits paid to the trust will be free from inclusion in the gross estate of the insured. In addition, the ILIT can also be structured so that the trust will provide benefits to the insured's surviving spouse without inclusion in the surviving spouse's gross estate either.

• First, you create a trust, an ILIT, which will acquire and hold a life insurance policy on your life. You make an initial cash contribution to the trust. The trustee of the ILIT uses the cash in the trust to purchase a policy of life insurance on your life.
• You make regular, annual contributions of cash to the trust. The trustee uses the cash to pay the premiums for the life insurance policy.
• Your cash contributions to the trust may qualify as non-taxable gifts to your descendants who are the beneficiaries of the trust (i) if the contribution for each beneficiary is under the federal gift tax annual exclusion amount at the time and (b) if the beneficiaries are given certain limited rights to withdraw the cash contributions. If your contributions exceed the gift tax exclusion amount, or if you do not grant the beneficiaries the rights to withdraw the contributions, then the contributions will be deemed taxable gifts. You pay no gift tax on taxable gifts until the aggregate value of the taxable gifts that you make during your lifetime exceeds your gift tax exemption.
• Upon your death, the life insurance proceeds are paid to the trustee of the ILIT. Under the terms of the trust that you create, you direct how those proceeds will be distributed to your family. For instance, you may wish for the trust assets to be held in further trust for your children until they reach a certain age.
• Because you were not the owner of the life insurance policy at the time of your death, the proceeds are not part of your taxable estate, and they are therefore not subject to estate tax in your estate.

An FLP is a limited partnership controlled by members of a family; like other limited partnerships, an FLP consists of two types of partners: general and limited. General partners control all management and investment decisions and bear 100% of the liability. Limited partners cannot participate in the management of the FLP and have limited liability. The partnership itself isn't taxable – instead, the owners of a partnership report the partnership's income and deductions on their personal tax return, in proportion to their interests. Some of the hardest decisions a family can make are how to handle money, property and other family investments. An answer to these difficult questions, especially for families with considerable real estate holdings, is establishing a Family Limited Partnership (FLP). When used properly, an FLP can be very profitable and save families thousands of dollars in gift and estate taxes. FLPs provide both protection from creditors and flexibility not found in other trusts, as it can be amended or changed.

In an FLP, generally, the senior family members (parents or grandparents) contribute assets in exchange for a small general partner interest and a large limited partner interest. They can then give all or a portion of the limited partner interest to their children and grandchildren. This interest can go to the heirs directly, or be set aside in a trust.


Transferring limited partnership interests to family members reduces the taxable estate of senior family members. The senior family members transfer the value of the asset to their children, removing it from their estates for federal estate tax purposes, while retaining control over the decisions and distributions of the investment. Since the limited partners cannot control investments or distributions, they may be eligible for valuation discounts at the time of transfer.

Transfers of limited partnership interests are also eligible for the annual gift tax exclusion, a powerful tool for reducing income, gift and estate taxes. According to law, the value of limited partnership shares can be discounted when transferred to family members. In addition, because of an FLP's flexibility, the family members who are owners can usually amend the partnership agreement as family circumstances change.

An FLP also protects assets from claims of future creditors and spouses of failed marriages. Creditors may not force cash distributions, vote, or own the interest of a limited partner without the consent of the general partners. And in the event of a divorce, where a limited partner ceases to be a family member, the partnership documents can require a transfer back to the family for fair market value, keeping the asset within the family structure.

By combining investments together into an FLP, a family's investment fees are significantly reduced. Instead of maintaining separate brokerage accounts or trusts for each child, the partnership can hold one brokerage account, and the children or trusts for children can own partnership interests.


An FLP must be structured with both the present and future owners in mind, protecting the generations of today as well as generations to come. To begin the FLP process, a written limited partnership agreement must be prepared. After the agreement is prepared, assets may be transferred, such as real estate, corporate stock, or cash. FLPs are not designed for the transfer of an individual's home, life insurance, or retirement plans.

The general partnership interests are retained by the senior partners for their lifetime, while the limited partnership interests are given as gifts over time to the limited partners.


Care should be taken both when creating the FLP and in observing the formalities of operating the FLP as a family business. Be sure to investigate state laws and the rights and obligations associated with transferred property, and always discuss any of these decisions with professional appraisers.

Please feel to contact us directly at (949) 260-8474 or via email at   Info@LloydsLawFirm.com  for more information!



If your debts have gotten so out of hand that you cannot keep up with them, you could be at risk of wage garnishment, repossession, foreclosure and other serious consequences. You may be getting harassing phone calls from debt collectors at all hours. You need options!

The New Bankruptcy Laws went into effect on October 17, 2005 but help is still available!

Bankruptcy filings have increased by over 30% in the last year and these numbers are expected to increase even more in the new few years due to the unexpected economic downturn. However, thanks to the new federal bankruptcy laws, bankruptcy is still a valid option for debtors seeking a "Fresh Start." Relief is still available under Chapter 7, Chapter 13, and even Chapter 11 for individuals and businesses. Although there are more stringent eligibility and documentation requirements than ever before, Lloyds Law Firm, PLC is here to assist you with a "common sense and compassionate" approach to filing bankruptcy!

True, it has become more difficult and burdensome to navigate your way through the bankruptcy process without an Attorney, the basic elements of relief, such as discharging certain debts and protecting you from your creditors, still exist...including saving your home from foreclosure, avoiding old tax debts or pending lawsuits and judgments!

It is crucial that you have an experienced Bankruptcy Attorney who knows the new laws and can guide you through the process while minimizing the costs and problems to you. Did you know you are allowed under special "exemptions" to keep most if not all of your assets when filing bankruptcy?

If you live in Southern California (Los Angeles County, Orange County, Riverside County, San Bernardino County, or San Diego County), contact me now to schedule a consultation to see if it is in your best interest to file for bankruptcy protection at (949) 260-8474 or via email at Info@LloydsLawFirm.com.

As such, please refer to the local government website for more detailed information http://www.cacb.uscourts.gov/.