Domestic Asset Protection
Protecting one’s assets through means inside the United States is
referred to as Domestic Asset Protection. There are a number of Domestic
Asset Protection tools through which you can achieve financial protection
and lawsuit proof your assets.
Below we will discuss some of the more common Domestic Asset Protection
strategies and how these tools can help you achieve better financial security.
One goal of Asset Protection is to “own nothing but control everything.”
We do this by utilizing legal tools to structure an Asset Protection plan
which fits your unique situation and provides you with security and leverage
against potential litigants.
Using the correct business entity to hold and manage your assets is one
of the first things to look at. Transferring your personal ownership rights
is a crucial step in protecting yourself. We do that by utilizing different
types of domestic tools such as
Equity stripping, and
Domestic Asset Protection Structures
You want to use
Limited Liability Companies when protecting liability producing assets such as businesses, real estate,
boats, cars, golf carts, and any other risky assets. LLCs are a versatile
tool for Asset Protection planning.
You would want to use
Limited Partnerships to secure non-liability producing assets such as cash, stock investments,
money market accounts, interest in a business, etc. Be sure that you structure
your LP in a way which gives you the least liability and the most control.
Trusts can offer an additional layer of Asset Protection as well as integrated
Estate Planning. Different trusts offer different benefits or advantages.
Before creating a trust, you should compare the differences with your
Asset Protection Attorney and Estate Planning Attorney.
Equity stripping is a tool we utilize to remove vulnerable equity from your assets. By
stripping the asset of its value, you become a much less appealing target
for frivolous lawsuits. There are a few ways to equity strip, but one
of the most common ways to do that is to leverage additional mortgages
or liens on your property or assets. If the asset is worth $300,000 and
you have $290,000 tied up in loans and liens, the available equity is
not worth a contingency lawyers time to pursue a frivolous lawsuit.
Financial Planning Exemptions can offer another layer of protection by transferring exposed assets into
assets that are exempt from creditors. Each state offers different exemptions
for different assets. Find a list of what is exempt in your state
There are numerous ways to protect your assets domestically, but the key
is protecting your assets proactively. You don’t get car insurance
after the car accident, and likewise you shouldn’t seek to protect
your assets once you’ve had a lawsuit filed against you. Protect
yourself before you have a problem.
Are you looking to put together a Domestic Asset Protection plan?
Contact us to speak with an experienced Asset Protection lawyer today. At The Presser
Law Firm, P.A. we offer complimentary preliminary consultations to help
you asses your level of protection and what options might help you get
better protected. Don’t wait until it’s too late. We can be
contacted through our live chat messenger in the bottom right corner of
our page, by phone at 561-953-1050, and by email at Info@AssetProtectionAttorneys.co