The Flanigan Law Group, A Professional Corporation
Call Our Irvine Office Today
Click Here To Call Now
Local: 949-450-0041
Toll Free: 800-732-2413

Equity Reduction Plan Helps Protect Real Estate and Business Assets

An Equity Reduction Plan (ERP) is designed to protect business or real estate assets, and can be a highly effective form of asset protection for those who have significant real estate holdings or own their business or professional practice (doctors, attorneys, etc).

Within the structure of an ERP, a practice called "equity stripping" can be utilized to move the equity or value of an asset to a protected position while still retaining original ownership. The advantages of this include:

· Avoids transfer of real estate ownership and the attendant property and transfer taxes

· Protection of multiple properties without the need to create separate LLCs

· Protection of property equity from an inside liability claim

· Protection of cash flow

· Protection of assets used to run the business

· Leverage of asset equity to generate business or investment income

When creating an ERP, it is important to accurately valuate the underlying assets and to keep that valuation current through a regular review process. In the event of a claim or lawsuit, the ERP lien takes precedence over the claim of any creditor; any judgment proceeds go first to the ERP and only excess proceeds are made available to satisfy any judgment claim.

The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.

No Comments

Leave a comment
Comment Information

Learn How We Can
Help You

Send Us An Email

How May We Help You?Send Us An Email

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

15615 Alton Parkway
Suite 450
Irvine, CA 92618

Toll Free: 800-732-2413
Fax: 949-271-6346
Map & Directions