What is Asset Protection? Asset protection is the process of legally safeguarding your assets from future creditors. Put more generally, you’re protecting your future from risks you haven’t encountered yet.
Asset Protection Rules
- You can’t do much to protect from a creditor you already know of.
- Hiding your assets is never the solution.
- Nothing is guaranteed in this field. Anyone who tells you otherwise is lying to you.
- Your strategy should match your level of fight.
- It’s not always about trusts.
If you already have a creditor banging down your gate, there’s not much you can do. Moving assets after a claim is made may be fraud.
Hiding Your Assets
Any lawyer worth his salt will ask where you have assets. He will do this while you’re under oath. If you lie, you go to jail.
Certain strategies are riskier than others. Therefore, a good plan incorporates a variety of strategies that match your comfort and your means.
Your Level of Fight
Your asset protection plan is only as good as you’re able and willing to fight to enforce it. Therefore, a billionaire’s plan isn’t a great plan for you because you don’t have billions to defend it.
It’s Not Always About Trusts
Trusts are great. They’re the bedrock of many asset protection and estate planning strategies. However, they’re not the only solution. If you want a trust for asset protection purposes, you need to give up a large amount of control over the trust assets. Therefore, it may not make sense for someone who wants or needs more control.
If you’d like to know more about asset protection strategies and how they may benefit your situation, feel free to contact us at firstname.lastname@example.org or by calling 919-912-9640.