Asset protection plans often require complex structures in order to effectively provide the assurance that assets will be safe. Knowledge about how to establish these plans is simply not something that the average person may have, no matter how financially savvy they are. In order to devise the most effective asset protection plan, an attorney is an absolute necessity. Without one, your hard-earned assets may be vulnerable to creditors and judgements.
You have worked hard for what you have and, chances are, you either have plans later in life for your assets or want to pass them down to the next generation. However, when you get into any kind of trouble, you are in danger of losing your assets. Pretty much everything besides your home can be at risk if there is every any judgment against you or if your creditors need something to go after. Unfortunately, when most people are asked what they can do to protect what they have, they are stumped.
Further, there are many different areas of the laws that are invoked by asset protection plans. In addition, the degree of safety afforded to your assets may vary on the provisions of state law that dictate the extent of the measures that are legal to protect your assets. This requires specialized knowledge in order to understand all of these issues and then incorporate them into an asset protection plan. This is where an attorney is helpful and can be of benefit in making sure that your assets remain yours.
Creditors will generally have their own high-powered attorneys representing their interests. These attorneys are generally skilled at finding ways to help their clients get their hands on your assets. Without legal counsel of your own, you are vulnerable to whatever happens. One should never leave themselves open to paying a price for not understanding the complexities of this area of the law. Experienced legal professionals who practice in this area will understand the nuances and the differences in the laws.
Much of the work for asset protection is done ahead of time. It requires a structure that is established to make your assets as difficult to reach as possible. This could involve setting up a trust or taking some other measures. Some states allow certain trusts that provide a maximum amount of protection such as a bridge trust. This requires an advanced expertise to know the proper jurisdiction in which to establish the trust as well as the state laws that permit it. An overwhelming majority of people would be at a loss if they have to set up a trust of their own, and an off-the-shelf solution really is not much help.
In addition, the work must be done early in order to avoid any appearance of impropriety. When it comes to asset protection, one of the things that a court looks for is whether there was a fraudulent transfer that one would make knowing that they are facing a specific liability. When a trust is properly established early, any suspicion of fraudulent transfers can be avoided.
Many companies in the market try to offer a DIY solution for people looking to protect their assets. These solutions are woefully inadequate and they may provide a false sense of security to anyone who avails themselves of these options since people may not fully understand the instruments that they are executing. The absolute worst thing is for someone to plan a course of action thinking that their assets are safe and then realizing once it is too late that they are not. Trust and estates law is very formal in the respect that if something is not done a certain way at a certain time than it has not happened.
Hiring a lawyer can help remove much of the uncertainty and give you the tranquility to know that you have the maximum amount of protection allowable under the laws of your jurisdiction.
Latest posts by Blake Harris (see all)
- Protecting Your Assets with the Help of an Attorney - July 29, 2019