More and more new lawsuits are filed each day in America.
In tough economic times, it becomes important to understand the strategies of asset protection.
It used to be that all a person had to do to preserve his wealth was to transfer assets to the names of family members and friends.
That no longer holds true today.
There are several techniques to consider when planning a strategy to protect your assets (and some techniques to avoid): • Consider transferring your assets into an LLC (Limited Liability Company).
Assets in an LLC cannot be touched.
• Land trusts do not provide much protection (so mostly avoid them).
• Consider the technique of Equity Stripping.
Equity Stripping is the process of placing a lien or note on an asset that may actually have equity but will now look more like a liability.
• For those living outside of Nevada, Nevada LLCs do not have any real (or special) advantage.
• Your strategy for protecting your assets should not be based on secrecy, or attempting to make assets untraceable.
• Timing.
Begin the process of protecting your assets before the assets come under attack.
• Consider utilizing retirement assets like 529s and life insurance.
Making contributions to these types of assets can offer excellent creditor protection, although it is important to keep in mind that these protections are not always absolute (depending on which state you live in for instance.
) In conclusion, asset protection is a necessity in these litigious times we live in and all the more important when combined with a tough economy.
(Note: THIS IS NOT LEGAL ADVICE.
Always consult a professional when beginning the process of forming an asset protection plan.
Asset protection attorneys can customize a plan for you and also make sure that a plan is established without the risk of the appearance of being seen as fraudulent.
)
In tough economic times, it becomes important to understand the strategies of asset protection.
It used to be that all a person had to do to preserve his wealth was to transfer assets to the names of family members and friends.
That no longer holds true today.
There are several techniques to consider when planning a strategy to protect your assets (and some techniques to avoid): • Consider transferring your assets into an LLC (Limited Liability Company).
Assets in an LLC cannot be touched.
• Land trusts do not provide much protection (so mostly avoid them).
• Consider the technique of Equity Stripping.
Equity Stripping is the process of placing a lien or note on an asset that may actually have equity but will now look more like a liability.
• For those living outside of Nevada, Nevada LLCs do not have any real (or special) advantage.
• Your strategy for protecting your assets should not be based on secrecy, or attempting to make assets untraceable.
• Timing.
Begin the process of protecting your assets before the assets come under attack.
• Consider utilizing retirement assets like 529s and life insurance.
Making contributions to these types of assets can offer excellent creditor protection, although it is important to keep in mind that these protections are not always absolute (depending on which state you live in for instance.
) In conclusion, asset protection is a necessity in these litigious times we live in and all the more important when combined with a tough economy.
(Note: THIS IS NOT LEGAL ADVICE.
Always consult a professional when beginning the process of forming an asset protection plan.
Asset protection attorneys can customize a plan for you and also make sure that a plan is established without the risk of the appearance of being seen as fraudulent.
)