3 Ways An Asset Protection Attorney Can Safeguard Your Wealth
An asset protection attorney can provide you with several options to protect your wealth from various lawsuits. This includes creditors, property foreclosures, and personal injury lawsuits. Asset protection is available for both businesses and individuals, and this type of asset protection is legal. Ideally, you want to seek asset protection before there is a lawsuit. In this way, asset protection is planning for the future. The following are a few things this type of lawyer can do for you.
They can assist you with corporate structures
Incorporating your business is an important tool to protect your personal assets. If somebody sues, it begins and ends with the corporation. Because you are not the corporation, even when you own all the shares, you will have your personal assets protected. However, there are different types of corporations and one may be better suited for your business than others. For example, a limited liability corporation is often used for a real estate business. There are also rules associated with a corporation that you will need to understand, such as how much money can be taken from the business, as well as the procedure for doing so. Without understanding the proper use of the corporation, it may be possible for an attorney to pierce the corporate veil and go after your personal assets.
They can assist you with asset protection trusts
This type of trust can be a powerful tool in protecting your assets, but many states do not allow for this type of trust. However, there are several that do, and this may be a good fit for your finances. There are also offshore asset protection trusts available. This type of asset protection trust can be the most powerful, but the laws are different from one territory to another. An attorney will be familiar with the current laws in these offshore areas and will know which country offers the best features, along with the highest political stability. Both domestic and offshore trusts have pros and cons that an attorney can discuss with you.
They can assist you with retirement plans
Generally speaking, retirement funds are off-limits to creditors seeking payment for outstanding debt. However, like many laws, those regulating retirement funds vary from state to state. Some states have better protection than others, depending on whether it's a private plan or a government plan. An attorney in the state where you live can explain how much of your retirement money would be subjected to a lawsuit.
Although there are options for asset protection after you are sued, to get the most out of asset protection, you need to plan ahead. You will have the widest range of options available to you, including various types of corporations, various trusts, and retirement plans. All of this is done within a legal framework when you use an asset protection lawyer.
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