You work hard to collect, save, and invest assets throughout your life. However, it can be easy for creditors to try and file claims against the assets you own, especially if you made accidental mistakes in paperwork or details along the way. This can jeopardize all the different assets you have managed to acquire over the years, which is why forming some type of asset protection plan is crucial to their safety and your future.
Here’s what you should know about the importance of asset protection and how it can help you.
What Is Asset Protection?
Asset protection is a method that uses different laws and legal strategies to protect the assets of businesses and individuals from creditor claims, asset seizure, and other judgments. It differs from legal practices like estate planning because its ultimate goal is to help individuals protect their assets while they are still alive. An asset protection plan will look different for every business entity or individual that has one created and works to protect their assets most beneficially for their situation. For example, those working in business may find that creating an LLC is an effective form of protection, whereas an individual who works as a doctor may want to create a trust to preserve their assets.
Why Asset Protection Is Important
Forming an asset protection plan can help you or your business protect the things that mean the most to you. It’s essential to have an asset protection plan to avoid potential future issues that could result in the loss of your assets. Just some of the benefits that an asset protection plan provides include the following:
Protection Against Creditors and Claims
One of the most common reasons people choose to create an asset protection plan is because it can help to protect them against potential creditor claims and litigation. Unfortunately, if a business or individual is being prosecuted and a judgment results in them having to pay, the entity taking up the case will most likely target expensive assets if they know you have them. An asset protection plan can decrease your risk of being targeted for claims and help you put aside important assets you want to keep out of reach in case you find yourself in litigation.
Increased Financial Privacy
Financial privacy can be difficult to find nowadays, especially when you own various valuable assets. Plus, oftentimes, the more public your finances are, the more prone to frivolous claims you can become. Creating an asset protection plan with one of our experienced attorneys increases your overall financial confidentiality. This allows you to move assets and put them in a safer location without all the financial entities in your life or the public having to know.
Minimal Loss of Assets
No one wants to lose the assets that they’ve worked hard to obtain over the years. However, sometimes creditors and other claims that force you to pay may target your assets as their reward. By forming an asset protection plan that helps to shield important assets like real estate or stocks, you can finally have peace of mind knowing that your investments are as protected from convoluted cases as possible.
How an Asset Protection Lawyer Can Help You
When it comes to forming an asset protection plan that suits your needs and addresses all important legalities, it’s most beneficial to work with an attorney experienced in business and financial law. Asset protection involves a wide range of legal techniques and strategies that should only be performed by lawyers familiar with them. Small mishaps can become large legal conflicts if they are not handled the first time properly. By working with one of our qualified asset protection attorneys at Lobb & Plewe, you can trust that we’ll guide you through the different legal aspects of asset protection and help you form a plan that works for you and your investments. We understand just how complicated creditor claims can become, which is why we’re dedicated to helping our clients get ahead of them. To better protect your assets and what’s important to you, create an asset protection plan with a lawyer you can count on today.
Q: What Are the Four Main Factors of an Asset Protection Plan?
A: Lawyers most often use four main factors to determine what kind of protection an individual needs and how to begin forming a plan to provide it. These factors include the nature of the asset(s), the creditor’s identity, the debtor’s identity, and the nature of the claim that arose.
Q: What Are Some Basic Asset Protection Techniques?
A: Whether or not you or forming plans as a business or individual will play a part in what strategies you and your lawyer end up using, but common asset protection techniques include methods such as creating LLCs and LPs, asset protection trusts, or the legal transfer of ownership of certain property or assets.
Q: What Is an Asset Seizure?
A: An Asset seizure can occur for various reasons, but most often happens because of a court judgment where the judge orders an individual to pay the party that filed the case. The party that is waiting to be paid may target your assets and request to have them seized as payment instead, which an asset protection plan can help you avoid.
Q: What Is an LLP?
A: An LLP (Limited Liability Partnership) is a partnership between two or more entities that allows them to have limited liability for the other individuals’ actions.
Forming an Asset Protection Plan
Asset protection is important for anyone, especially if you believe you may be a target for potential claims. Our team of attorneys is available to determine how they can help you if you’re in California or Nevada and are looking for the most effective way to protect yourself and your assets. With decades of shared experience working in business and finance law, you can trust our team to help you achieve your financial goals. Contact the office of Lobb & Plewe, Attorneys at Law, to learn more about our firm or arrange a consultation.