ASSET PROTECTION
The United States is a very litigious Country. People are suing each other all the time. In fact, one of the very first things people do before they decide to sue someone is checking to see if they have assets under their name to make sure the lawsuit is worth the investment of time and money. Due to the fact that a lot of people and their attorneys do this pre-litigation asset check, it is wise not to hold any assets in one’s own personal name. Asset Protection is generally the concept of and strategies for guarding one’s wealth and what they own. This can include protecting your cash, investment securities, notes, receivables, investment real estate, a personal residence, patents, trademarks, copyrights and shares in a closely held corporation. It involves the type of planning intended to protect one’s assets from creditor claims. Individuals and business entities can use certain Asset Protection techniques to limit creditors’ access to certain valuable assets while operating within the bounds of debtor- creditor law.
Asset Protection helps insulate assets in a legal manner, without engaging in the illegal practices of concealment (hiding of the assets), contempt, fraudulent transfer (as defined in the 1984 Uniform Fraudulent Transfer Act), tax evasion or bankruptcy fraud. It is important to understand that effective Asset Protection begins before a claim or liability occurs, since it is usually too late to initiate any worthwhile protection after the fact. Some common methods for Asset Protection include asset protection trusts such as irrevocable trusts, accounts-receivable financing, family limited partnerships, and having certain business entities such as LLCs or Corporations hold your assets.
For further details, please call us today to discuss your situation.