Asset Protection Planning is a strategic, preemptive preparation to prevent creditors from obtaining your assets in the unfortunate event of a civil judgment. It does not mean that you ignores your debt obligations.
Wealth Preservation Plans are designed to protect your assets in a legal tax compliant manner. If you have net worth you are most likely a target for litigation. Lawsuits are up year over year for the past 6 years.
The keys to planning
1. Plan in advance of trouble
2. Use time-tested structures
3. Have your planner review current case law
4. Keep up with your plan
The real key to a solid plan is to have all the available options on the table.
Business and personal considerations
Personal liability is different from business liability, but it is possible to mix the two. However, it is also possible to compartmentalize or separate liabilities, and this is a main objective of asset protection plans. A skilled planner will understand the options available for specific circumstances.
In most if not all cases with regard to litigation, companies and people will be named in the suit. This concept is somewhat of an end around to get to the humans behind the company.
Plans should be crafted when the financial seas are calm. It is important to protect assets before a creditor attack and not during the threat. Assets transferred fraudulently will be subject to clawback.
Every plan is for an individual or families situation and therefore a practitioner must have vast knowledge of the options and the laws.
A good practitioner may or may not be a lawyer. Many disciplines are needed for an overall wealth preservation strategy. Threats to the family nest egg are many. It generally takes a combination of advisors, both legal and non-legal to accomplish the goals.
Let us help you with the myriad of options for your wealth preservation plan.
Call us for a 20-minute consultation.