Asset protection is an area of practice designed to insulate your property from potential outside claims. Whether you face high liability claims in your profession, or are a business owner or real estate investor, an asset protection plan can help reposition assets titled in your own name into nonexempt assets that can be difficult for creditors to access.
Consider the following:
- Do you have adequate insurance? Proper insurance for your home, auto and business is a great first step.
- Do you own any real estate? If so, are your properties titled in your own name? Properties titled in your own name are more vulnerable in the event of a lawsuit.
- Do you own a business? Do you maintain the required corporate documents for your business? Properly managing your business is critical to protecting both your business and personal assets.
- Finally, do you have asset protection through an estate plan that will guard your assets in the event of death or incapacity?
Asset Protection Strategies
Depending on your current situation, these are some of the Asset Protection strategies that we recommend:
- Review of insurance coverage
- Formation of business entities
- Separation of business and personal assets
- Creation of domestic asset protection trusts or foreign asset protection trusts
- Use of equity stripping devices
- Implementation of a coordinated estate plan
Using LLCs to Protect Your Property
Limited Liability Companies (LLCs) provide a powerful tool for Asset Protection. Families or individuals can benefit from the protection that LLCs provide by creating a proven and reliable structure to manage and distribute family property to children or future generations.
If you own multiple properties (e.g., vacation home, rental property, shopping center, apartment building, etc.), it is best to establish one or more limited liability companies (LLCs) as the owner of the properties.
We are experienced with Asset Protection planning and can help you map out a strategy that will safeguard your assets. Contact our office today to learn how we may be of service to you.