Category: Asset Protection

It has only been in the last decade or so that more individuals are realizing the serious benefits of asset protection planning. This is primarily due to the fact that more people in the U.S. see the litigious society and the serious risks that an individual could be exposed to with just one lawsuit. There are, thankfully, plenty of meaningful and effective asset protection planning strategies, but it’s also important to know what this process will not do for you. 

You cannot use asset protection planning, for example, to avoid paying your taxes. In addition, this kind of planning is usually effective for protecting assets but not hiding them. Bear in mind that an asset you hide could ultimately be found, but one that has been protected is much more secure overall. Finally, an asset protection planning attorney does not engage in asset protection planning with a client under the guise of defrauding creditors.

This kind of planning is the most valuable when you engage in it long before you have an issue. Trying to get legal help in organizing things when a creditor is already attacking your personal assets is much like a day late and a dollar short. The most effective plans are those you have in place well before an issue occurs, and you need an experienced and knowledgeable attorney to help you get there. Do not hesitate to reach out to someone with experience in this field.

Although there are many assets exposed to creditors if you do not engage in the process of asset protection planning. Federal laws do protect particular assets. For example, a qualified retirement plan governed by ERISA, such as a 401(k), is protected. These are mostly out of reach to creditors except in a few select circumstances. State laws may also protect various assets as well. The majority of states do protect traditional individual retirement accounts.

Many individuals may also use a life insurance policy to help protect them from potential creditor claims. This allows you to also have the peace of mind that there will be finds left behind for your loved ones in the event that something happens to you. Although there are select circumstances in which some of your assets may be protected from creditors if you take no action, it is strongly recommended that you consult with an experienced asset protection planning attorney to protect as much of your estate as possible. It can be an unpleasant surprise for a lawsuit to arise and to have all of your personal assets potentially attached to this.

Having an asset protection planning attorney is vital to long-term success because you need to be able to mitigate risk at any given time. A long-term approach to asset protection requires regular review so that you can prevent problems before they happen. Even though some of your assets may be shielded already, this does not mean you are fully protected. Contact a New Jersey asset protection planning attorney to learn more.

The first line of defense to protect of your assets from future claims is to consider insurance. This is because insurance on its own can help to mitigate a significant number of risks. You should also, of course, consult with a knowledgeable New Jersey asset protection planning attorney to learn more about your options and to discover other strategies and tools that can be useful in this process.

Some of the most common types of insurance that can be used to help ward off potential lawsuits and attachments to your personal assets include malpractice, business, automobile, homeowners, umbrella, and long-term care policies. Liability insurance is essential for providing the funds necessary for paying damages and it can also frequently include payment of some or all of the legal fees linked with a lawsuit.

Now is the time to get an umbrella policy if you do not already have one. It is relatively inexpensive to obtain an umbrella policy when thinking about more advanced ways to protect your individual assets. That being said, you may also choose to use both methods to protect your assets significantly. Verify that all of your policy limits on any existing insurance policies are well in line with your net worth. It’s a good idea to evaluate this on a yearly basis so that you can determine whether or not you need to make adjustments.

We live in a world where litigation is unfortunately all too common. Any individual in a high-risk profession should consider the benefits of engaging in asset protection planning now. Some example include paramedics, architects, recreational fliers, pilots, physicians, and contractors. Others like professional athletes, individuals with a high net worth, entertainers, and political figures should also consider the benefits of asset protection planning as they are placed directly in the line of attack for lawsuits.

Asset protection planning is another way to limit your exposure as well and these strategies can be beneficial when you work with an experienced asset protection planning attorney. If you have any exposure to risk, it is important that you consider looking into asset protection planning immediately.

It is always better to engage in asset protection planning well before a claim has arisen against you. If you suspect that you may be sued at some point in the future, it’s a good idea to engage in asset protection planning now. Waiting until it is too late and someone has already brought a claim against you can have significant repercussions for your future. Do not hesitate to reach out to a New Jersey asset protection planning attorney today.

Asset protection planning is simply using legal strategies and structures to transform property from that which could be accessible to creditors to at least making it partially protected. There are several tips that you can use to accomplish this goal.

1. Rely on Liability Insurance

The first line of defense against any kind of liability is insurance including business, malpractice, professional, automobile, homeowners, umbrella and long term care insurance. Liability insurance gives you a way to pay monetary damages and may assist with some or all of the legal fees associated with a lawsuit.

2. Maximize 401(k) and IRA Contributions

Tax favorable retirement accounts such as 401(k)s and IRAs are protected from creditors and bankruptcy although there are some limitations to this. Maximizing your contributions in this way is a good way to increase your retirement savings while also protecting this money into an LLC. If you are a real estate flipper, investor or a landlord, then it’s a good idea to contact an attorney to help shield your assets from creditors, predators and lawsuits. There are two kinds of liability that can impact individuals like this with claims like slip and falls on the property and outside liability such as situations in which creditors retrieve assets to cover a debt. Consult with a knowledgeable asset protection planning attorney to learn more about what you should know in this process.

Most physicians are aware that they face an increased risk for litigation and exposure to personal claim attachments. That being said, many individuals make mistakes when it comes to transitioning out of their training and residency into the accumulation of wealth phase of their life.

Medical malpractice claims are certainly disconcerting for physicians but individuals might also be facing bogus employee lawsuits, commercial real estate creditor claims, or claims against physicians or investors for their role in non-practice related businesses. Doing nothing now can be the biggest mistake that you can make with regard to your asset protection planning. This is because if you wait until an incident happens, it is already too late to fix a great deal of the damage.

This is because if you wait until an incident happens, it is already too late to fix a great deal of the damage. Instead you should be proactive with protecting your assets as your wealth accumulates over the course of being a physician. Consulting with a knowledgeable asset protection planning attorney in New Jersey is essential from the outset of establishing your own practice or completing your residency. Doing so will give you the most up to date information about how to protect yourself as your wealth accumulates. There are many different risks that you may face as a physician but properly planning can guard your personal assets from being attacked.

Most people are aware that an LLC is the important first layer in an asset protection planning strategy, but it might not be everything you need. it’s a good idea to consult with an asset protection planning attorney on a regular basis so that you can ensure you are fully protected.

The benefits of asset protection planning are numerous, but they all primarily center around the concept of keeping your personal assets out of the reach of a potential litigation. According to data from the Pacific Research Institute, the U.S. is the most litigious country in the world. There are more than 15 million civil lawsuits in the U.S. filed every single year, leading to $250 billion plus in costs. 

Although the LLC should likely just be the cornerstone of your protection, it is an important first step. Most asset protection planning specialists will agree that the process is threefold: implementing tax reduction strategies, comprehensive estate planning, and lawsuit protection.

The reality is that you need an attorney and firm with experience in all three. It’s the best way to ensure that your tactics are aligned with the needs of your business. Any business owner knows that needs and threats, much like any other aspect of business, ebb and flow over time. Working with an attorney who is sensitive to this will increase the chances that you have the best possible chance of protecting yourself.

Be aware that even with an LLC, courts may allow the piercing of the corporate veil. You need to work with a firm that understands this risk and helps explain your best responses. Contact a New Jersey asset protection planning attorney today to learn more.

There is no question that cyber threats exist and that for many it is not a question of if but when. One issue is that a key focus seems to be on compliance or finding the tangible product or magic bullet that will check off the boxes of what is required for protecting your assets.

Although many individuals do purchase programs to avoid cyber threats, according to an electric industry paper, 2014 Strategic Decisions, only 32% of these individuals have used systems with proper monitoring segmentation and redundancies.

The key is not to avoid responsibility and to realize that buying a package monetary by-staff at a remote location is no substitute for integrating a program with your on-site personnel in a systematic complex thoughtful plan that protects the unique assets being held.

Much like offshore assets, the Caribbean reef squid is a master of disguise. Its skin composition allow it to blend into surroundings and in a sense to disappear. Assets should behave not as the tall reed in the ocean that attracts attention but instead rather be left to mature and grow sturdy.

This should be your general approach with asset protection planning under the guidance of an experienced attorney. Misdirection and a sturdy structure can be found in LLC’s family foundations and trusts.

All of these can add a layer of protection making it more difficult for an outsider to understand who is who and who owns what, and thus leading some creditors to move on from trying to figure out the answers. Finally, placing assets not in cash but instead in collectibles or medals can make for allusive targets. Contact an asset protection planning attorney today if you would like to learn more.

When a liability issue arises, action is often too late even if it’s well-meaning. Early formation of an LLC or an asset protection trust in Nevada can be protective and can serve as a hindrance to creditors. Only an experienced asset protection planning attorney should help you put together an LLC or other structure out of state. 

But it can usually be done with very little reporting on a tax-free basis and very quickly. One of the main benefits of working with an asset protection trust in Nevada is that it provides charging order protection. This means that liens attached carry economic interest only, not allowing a creditor to see shares or take control.

When devised properly, the asset protection trust prevents creditors from seizing assets held within the trust, and another major benefit of going this route is that it can be set up quite easily by an individual. When this protection planning is used, it can create a double layer of protection. A creditor may not receive a distribution or make decisions but assets are also protected by the trust forcing a lower settlement of any lawsuit. In fact using this kind of trust in general can help to prevent lawsuits because creditors may realize that they are not able to tap into the assets they thought they might be able to. As always, only consult with an experienced assets protection planning specialist before putting together any kind of trust.

We’ve talked about asset protection planning a fair amount on this blog, but that’s because it carries a message worth repeating: you’ve worked hard to build your wealth and it’s equally imporant to protect it as much as possible. This type of advanced planning is becoming more and more appreciated by the ultra-wealthy, who see it as a critical strategy for protecting assets during their lifetime and structuring a plan for when they pass away, too. 

One of the reasons for the increased attention to this issue has to do with structure. Our society is litigation-driven, unfortunately. This idea that someone is always to blame for an accident or incident means that individuals face a higher risk of being sued by someone, and being perceived as wealthy only ups this risk.

And the costs associated with a lawsuit extend far beyond attorney’s fees and the expense of a lost suit. It’s about the emotional drain from protracted litigation, too. Extended litigation can be extremely draining for a defendant, particularly when there are no foundations to the allegations. A strong asset protection plan can be essential for not only handling lawsuits when they arise, but also for detracting would-be litigants from filing a suit in the first place.

Talk with your attorney about the various strategies that can be used to protect your assets. Set up your meeting today at info@alawesq.net.

Being aware of where you invest your money might seem like an obvious asset protection tip, but it’s one that bears repeating. Of course, you should always discuss your investment options with your financial advisor and then schedule an appointment with your asset protection attorney to determine the right vehicles for protection.

The sad news is that sham investments are back on the rise. That’s because  a scheme involving Turkish bonds has now emerged, and many people are trying to buy in. These bonds are non-existent.

According to some reports, as many as 120 people have purcahsed more than $28 million in worthless bonds. Even though the individual who created the scheme is off to prison for his part in the scheme. He was not even a financial advisor, either.

How can you protect yourself? Make sure that you’re always working with professional advisors. Look for a financial advisor with credentials and years of experience before agreeing to do  business together. Check around to get references and slowly build your trust with this person. The same goes for your asset protection attorney- look for a team that is truly committed to doing the right thing for you both now and in the long run. With your hard-earned money on the line, it’s critical to carefully vet anyone you consider working with.

Making sure you’ve reduced risks associated with your assets is an important part of your overall planning for finances and your estate. Read on to learn more about five key tips to get started. 

Consider the Pros and Cons of Offshore Money

Unfortunately, some recent cases involve courts mandating that debtors bring back overseas assets through “repatriation orders”. If you do not comply, the court can issue a bench warrant leading to contempt of court. Make sure you know the rules and current interpretations in the U.S.

Make Sure You Can Explain Your Asset Protection Plan

It’s not very valuable to you if you cannot walk through how it works. Imagine being asked about your planning structure in deposition- could you easily explain the setup? The best plans are those that you can understand and see the benefit of. Make sure you work with an experienced estate planning attorney.

Know That the Planning May Become Completely Visible to Creditors 

Even if your plan is successful in shielding your assets, creditors might be able t know what’s in it. A plan that requires secrecy usually has other complex elements like ensuring that a former spouse does not speak to creditors or help from an experienced tax specialist when you must report the activity on returns. Talk with your asset protection attorney about the best structure for your plan.

One of the most popular approaches to estate planning has to do with safeguarding assets against possible losses. Asset protection trusts are one common way to protect property for you and your beneficiaries. 

Asset protection trusts refer to irrevocable trust structures in which a trustee holds property and distributes it out under his or her discretion. The trust protects the assets from being exposed to risk through divorce, a beneficiary’s creditors, or other predators in the future. There are two primary categories for asset protection trusts: third party trusts and self-settled trusts. As the name suggests, a third party trust involves a trust being set up by one party to benefit another whereas a self-settled trust is established by one party for his or her own benefit.

Passing on assets to children or grandchildren these days could potentially be risky in such uncertain times, what with bankruptcies, lawsuits, and divorces all possible. Asset protection trusts can also guard against another common client concern: that a beneficiary will blow through all the money too quickly. In cases where a beneficiary develops a disability later in life, without proper planning this beneficiary may have to spend a large sum to support the needed care while also being disqualified for medical benefits.

These situations call for third-party trusts such as:

• Trusts for the benefit of adult beneficiaries- This is ideal for those who are not good or comfortable with managing money, those who may get divorced in the future, or those who have an addiction problem.
• Trusts for the benefit of minors- Since minors can’t legally accept an inheritance, this can be a way to provide assets in the future.
• Trusts for the benefit of disabled individuals- A large inheritance could disqualify someone from government benefits while forcing them to spend through the assets they receive.
• Trusts for surviving spouses- This is a popular option if you are concerned that your spouse will remarry or will be unable to manage the inheritance properly.

Consider the flexibility offered in these kinds of trusts and contact our office today for more information. Send us a message at info@lawesq.net