At one time or another, most of us have worried about causing an accident and being sued. Or we have considered the financial loss that might result from a divorce or bad business dealing. These are just a few of the situations in which your personal assets may be lost to creditors. If you are concerned about protecting your assets for yourself, your family members and future generations, you need to know your options. 

Asset protection planning is about legally organizing your assets in such a manner that creditors cannot reach them. Should you or your heirs be faced with an economic crisis or a serious lawsuit, the assets you have spent your life accumulating would be protected. If you are concerned about protecting your assets for yourself and future generations, you need to plan sooner rather than later.

Often times when faced with a lawsuit or other financial crises, a person will give away their assets to a close friend or family member. The flawed idea is that if you don't own anything, there is nothing for your creditors to take. In fact, arbitrarily giving away your property when faced with a problem is the worse thing you can do. The Uniform Fraudulent Transfer Act (UFTA) empowers creditors to reach assets that have been given away. However, with careful planning the UFTA may be avoided. 

Certain assets receive automatic protection. For example, your 401k, IRAs (to a certain extent) and other retirement plans and annuities are automatically protected. Also, if you are married and own your personal residence with your spouse, the residence is generally protected. However, it is a common misconception that revocable trusts serve to protect assets. That is simply not true, although if drafted properly a revocable trust may protect your heirs inheritence after you pass away. 

Irrevocable trusts may also be used to protect your assets, but care must be taken in transferring your property into the trust (the UFTA may apply to thwart your efforts) and you must understand the tax implications. If utilized properly, limited liabilty companies (LLCs) and corporations may also protect your personal assets - although the tax implications of these entities must also be considered. Finally, if you are in an emergency situation offshore trusts may be used as a protection device of last resorts. 

We have extensive experience helping people protect their assets. We can help you understand your options and the risks and rewards associated with each of them. Often times relatively simple planning done at the right time can go the distance to preserve all of your assets, regardless of the nature and extent of your future liabilities.