Asset protection is the safeguarding of your physical and financial property against creditor judgments, negligence lawsuits, and divorcing spouses. Through Advanced Estate Planning you can provide this protection for you, your spouse and your children.
To begin protecting assets, you must first make a full list of all of your belongings and the corresponding values. If you have already created a basic estate plan, you may have formed this list when figuring out your net worth.
With the help of your attorney, you can navigate your list of property to determine the exemption status of each item. An exempt asset is one that cannot be signed for a court action. For all items that are nonexempt, your attorney can assist you with protection methods such as Irrevocable Trusts and Limited Liability Companies.
Protecting your assets offers you protection during your lifetime. A creditor cannot place a lien on property that is exempt. This will ensure you have a place to live and funds for your retirement years. Asset protection can also shelter the inheritance of your spouse and children from your debts and from their debts. As long as an item remains exempt, it cannot be taken by a creditor, or for a lawsuit or divorcing spouse of an heir.
With asset protection you can make sure your loved ones will continue to have a home to live in and funds for their daily needs after you have passed away.
You must begin asset protection before there is any chance of having your assets taken. If a creditor is already seeking a judgment against you or if a lawsuit is already a possibility you are too late to protect your belongings.
If you protect items after they are already at risk, your actions may be considered fraudulent and a court of law might reverse the exemption status.