In today’s litigious world, it has never been more likely that creditors will try to use the legal system to attack the estate you have spent a lifetime building. Asset protection planning involves figuring out and applying lawful techniques that protect your assets from claims of future creditors. Asset Planning deters potential creditors from going after you, and complicating it if they do, generally by making it difficult or impossible for future creditors to grab hold of your assets or collect judgments against you.
Your degree of exposure to risk of liability, the type of assets you own, and your total net worth are essential factors to consider when you and your lawyer develop a strategy for asset protection. Asset protection planning may be as simple as purchasing insurance or establishing a company; however, at times it includes setting up a series of trusts, partnerships and/or off-shore entities to hold legal title to your assets. A future creditor who recognizes how difficult it would be to collect on any judgment it may win, might decide it makes little sense to pursue a claim, or be willing to settle for pennies on the dollar.
Since all assets are not treated in the same manner and you must be aware of the fraudulent transfer rules, please contact us for a free initial consultation to discuss the type of asset planning your estate requires.