Asset Protection is the process of legally and ethically protecting assets from the threat of future/potential creditors. Each State has their own Asset Protection laws and nuances, however, the following is a list of Asset Planning Tips that anyone can utilize regardless of where they live.
1.PLAN EARLY: The best time to initiate an Asset Protection Plan is when there are no current and/or anticipated creditor threats. The reason for this is that any transfer made in anticipation of keeping said funds from a current/anticipated creditor is considered a Fraudulent Transfer (Fraud). When the Court finds out about an attempted Fraudulent Transfer, such individual may have to reverse the transfer and distribute the transferred assets directly to the creditor. To the same effect, Asset Protection planning should ideally occur when a claim has not yet materialized. If an individual plans too late, then they may subject all of their non-exempt assets to the claims of creditors.
2.LIABILITY INSURANCE: Liability Insurance is a great safety net in the case of a creditor threat. Creditors will usually submit their claim to the Liability Insurance Company, who are then is obligated to defend you free of charge. However, in many cases, claims are not covered by insurance. To maximize your Asset Protection, it’s important to couple your insurance with an Asset Protection Plan.
3.CONTROL: An individual who sets up an Asset Protection Plan and retains full control of the assets. The goal of Asset Protection is to own nothing, but control everything. For example, many protective entities, if set up correctly, will allow you to keep 100% control over you assets and also keep them protected. On the other hand Irrevocable trusts, although they offer you the protection, you do not retain control over the assets.
Contact The Presser Law Firm, P.A. for a complimentary consultation to learn more about Asset Protection, Business Law, and Estate Planning.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com