At Heritage Law, we help our clients achieve asset protection as part of our comprehensive estate planning process. We believe it is an important part of any individual’s financial plan to have one in place to cover your liabilities, including lawsuits or attacks by creditors.
You spend many years of your life working hard to accumulate assets and grow your wealth, but we urge you to take the time and spend a few hours thinking about how you can protect your years of hard work with an asset protection strategy.
We help real people and real businesses alike, such as:
Asset protection is the process of guarding one’s wealth. It is a component of financial planning intended to protect your assets from liabilities like creditors’ claims and lawsuits.
Asset protection helps in insulating your wealth in a legal manner without engaging in any sort of illegal practices like concealment, fraudulent transfer, contempt, tax evasion bankruptcy, fraud, etc.
Many business entities and individuals use methods of asset protection to limit creditor access to their family’s current wealth. This safeguards not only their own estate but the estate their children are to inherit in the future.
Under the United States federal bankruptcy USFB and the employee retirement income security act of 1974 laws ERISA there are certain assets that are exempt from creditors such as retirement plans.
A person’s need for asset protection is increased if they are more likely to face a lawsuit or if carry a high degree of liability. Examples of these people are –
A proactive approach to asset protection usually nets more available options if an issue occurs. With proper planning, it becomes easier to protect your assets from lawsuits, judgments, creditors, and divorce cases.
Asset protection planning includes establishing equity stripping strategies, asset protection trusts, privacy trust, LLCs (Limited Liability Companies) FLP (Family Limited Partnerships), foreign corporations, etc. many asset protection plans also include offshore elements in those countries where the laws are very protective.
Behind a good asset protection plan, there is a legal examination and a professional behind. These experts assess one’s financial condition, assets as well as the risk, and family goals.
Various asset protection planning includes –
In today’s world, it is important to have an efficient yet effective asset protection plan to be free from the potential of any liability, lawsuits or other claims.
Asset protection reduces the risk of losing one’s property that you have accumulated through your time and effort. These assets provide financial security that in turn provides peace of mind.
When it comes to real estate, most liability lawsuits result from accidents. This liability can land you in court regardless of the root cause in case, and you could be found to be liable for those damages or injuries. However accidents cannot be anticipated and unfortunately it also does not clear your liability, but you can protect yourself and your assets in several ways including- insurance, compartmentalization, separation or shell companies, and anonymity.
Protecting your business’s financial future, real estate requires working with strategies more than just entity planning architects. Therefore the advisors and the asset protection lawyers must look at the situation from a financial, legal, and business planning perspective before implementing any further strategies.
Proactively protecting yourself allows for more choices than if you are already being sued.
If you research forms asset protection, you will find that in order to reach a higher level of creditor protection you may have to give up ownership in some cases. We understand many clients are not thrilled about giving up control over their assets, especially if you have spent your lifetime to accrue them through your hard work.
But trust us, it has its place.
If protection of your estate is important then you should speak with an experienced asset protection attorney who can elaborate on the details.
Often clients need protection, many times they will place their assets in a trust. Both irrevocable trusts and revocable trusts are common forms of what’s referred to as “asset protection trusts”. Trusts can protect assets as they can avoid probate, minimize estate tax, and protect from the attacks of future creditors.
An irrevocable trust is a type of asset protection trust that provides a high level of protection from creditors. In an irrevocable trust, the grantor gives up their rights to control of the assets in the trust. Since you no longer control said assets, you don’t have the power to transfer those assets, and as such they’re better protected from your creditors.
Apart from irrevocable trusts, another tool to provide protection is a revocable trust. In a revocable trust the right to alter the trust, by amendment is reserved by the grantor.
When you create a trust you also build a wall of protection around all the assets you own and hence you no longer own your assets but the trust does. This method distinguishes your personal assets from the trust assets.
All trust and asset protection strategies come with pros and cons. It’s important to consider the benefits and potential liability of each with the legal advice of an asset protection attorney, especially if you own significant assets.
When it comes to choosing an attorney for estate planning and asset protection you can look for one who has the experience to provide the correct guidance on how to shield assets. Choose to work with a law firm that prioritizes the attorney-client relationship.
Heritage Law can help you protect your wealth, no matter the size of your estate. Whether you are new to protecting your personal assets, or you have experience, we understand this can feel like a daunting process. But we want our clients to understand this is the exact reason we chose to practice law, to help you have better protection against predators and have more peace of mind.
Whether you are concerned about preserving your home, business or current financial situation we can help. At the end of the day we want to better secure you from personal liability, creditor claims, car accidents, legal fees, and much more.
Give us a call today because we’d love to talk about asset protection strategies to protect your future.