WHAT is Asset Protection / Preservation Planning?
Asset Protection / Preservation Planning is dedicated to protecting your assets from creditors — and it’s not just for super wealthy clients anymore. Asset Protection / Preservation Planning is a proactive legal action that protects your assets from future claims, lawsuits, divorces, creditors and judgments. The planning involves putting into place a series of legal vehicles/techniques that can deter / impede a lawsuit from occurring and that can help prevent or exempt the seizure of your assets in the event of a judgment.
It’s a fact that in today’s litigious world anyone can get sued, either for being in a car accident, having credit card debt, or having a neighbor fall on your sidewalk, to name just a few reasons. And if someone takes you to court and wins a monetary judgment against you, your family could face costly legal expense and even bankruptcy just trying to pay off the judgement. No one needs that stress and uncertainty in their life. That is why it is important to be proactive and to put a plan into place early.
To keep your assets away from creditors, you need to move them somewhere where creditors can’t reach them. Here are just some of the Asset Protection / Preservation Planning techniques that can be used to protect you and your family:
- make sure all of your assets are fully insured
- maximizing your IRA contributions
- setting up and moving funds & assets to an Irrevocable Trust
- re-titling assets
- setting up LLC’s (Limited Liability Companies)
- setting up Family Limited Partnerships
It is important to note that it is illegal (fraudulent) to defraud current creditors – and we will not be able to help you transfer assets into an asset protection vehicle so that creditors can not reach your assets. Courts can reverse the transfer of your assets into such vehicles and they can also assess stiff penalties for doing this. That is why it is a good idea to put a plan into place now — before it is too late.
Finally, Asset Protection / Preservation Planning is a strategy and if implemented correctly it can contain minimize risk. But be advised that it cannot guarantee complete protection from your creditors seizing your assets. No technique can guarantee 100% protection, but if executed and administered properly, many of the techniques can be incredibly effective.
The Law Office of Scott Bloom is available to discuss your short and long term Asset Protection / Preservation Planning needs and is available to help you create a plan that will work for you. If you are ready to meet with us to discuss setting up an Asset Protection / Preservation Plan or have additional questions, please feel free to contact us today!