transferring personal brokerage account to separate entity for asset protection

[flemington1947]

What is the name of your state (only U.S. law)? New York


Hello all,

As a small business owner and real estate owner, the threat of a frivolous lawsuit is always there.
What I would like to do is create a new corporation and open a brokerage account for this corp., then transfer the mutual funds held in my personal brokerage account into the new corporations brokerage account.

Would this be a good way to protect my personal assets if I am sued or in the case of a divorce?
Would this create an extra or new tax burden?
I want to avoid a single member LLC as it would be attached to my personal tax return on the schedule C.

Thanks in advance for your thoughts/ideas!

 

[latigo]

What is the name of your state (only U.S. law)? New York


Hello all,

As a small business owner and real estate owner, the threat of a frivolous lawsuit is always there.
What I would like to do is create a new corporation and open a brokerage account for this corp., then transfer the mutual funds held in my personal brokerage account into the new corporations brokerage account.

Would this be a good way to protect my personal assets if I am sued or in the case of a divorce?
Would this create an extra or new tax burden?
I want to avoid a single member LLC as it would be attached to my personal tax return on the schedule C.

Thanks in advance for your thoughts/ideas!

What leads you to believe that an attaching creditor could not attach or a judgment creditor levy execution upon your shares in such a papier-mâché
entity?

Such a judgment creditor could not reverse the transfer under Article 10 of New York’s Debtor Creditor laws (conveyances in fraud of creditors) because you would have received fair consideration in the form of shares of capital stock. But those shares of corporate stock would be subject to pre-judgment attachment and/or levy of execution.

But keep on scheming.

 

[tranquility]

I agree with latigo, you seem to be confusing in liability with out. You cannot protect what you own when you committed the problem.

 

[curb1]

No, it would not protect your personal accounts.