Can Assets Inside an LLC Be Protected From Creditors? | Monroe Township - Middlesex County
Website Home Contact Us Blog Archives Blog Home

Interesting Image
 
 
 

Would you like more information on:

 
 
 
Schedule a Phone Call
to discuss your planning needs!
Click to Schedule an Appointment







Website Home


Topics



Archives


Contact Information

Forsgate Commons
241 Forsgate Drive
Monroe, NJ 08831
PH: (732)521-WILL (9455)
FX: (732)521-1204
Info@LawEsq.net
www.LawEsq.net






Can Assets Inside an LLC Be Protected From Creditors?

February 10, 2016

Filed under: Estate Planning — Neel Shah @ 9:15 am

 

One of the most popular asset protection tools available today is an LLC. LLCs that are managed properly are typically safe from the reaches of creditors of an individual member but there are exceptions to this rule that begins with the number of members, even if an LLC is the right strategy for a particular type of asset.shutterstock_284134766

If a debtor is a member of the LLC at the time a creditor begins collection efforts against that member individually, any profits from the LLC that would otherwise be distributable to that debtor member are stuck inside the LLC. Even though a creditor can’t enjoy the profits of the LLC or LLC assets that are allocated to the member share of the organization, the member will be unable to enjoy them either since a creditor with a proper legal standing can intercept them before the member receives them from the LLC. This is why it is imperative to be knowledgeable about how LLCs work and whether it’s truly the right asset protection plan for you.

Knowledgeable implementation can make better use of such a tool and there are numerous asset protection tools available including insurance policies, annuities, IRAs, installment sales, limited partnerships and special trusts. Consult with a knowledgeable asset protection planning attorney to learn more

Leave a Reply

Your email address will not be published. Required fields are marked *