Asset Protection is a type of planning intended to safeguard one’s assets from creditor claims. Business owners and other wealthy individuals have always been concerned about the exposure of their assets to opportunistic creditors. It is human nature to protect what is rightfully your own.
That concern is increasingly warranted in today’s society – one that is largely victim-oriented. In many ways, it has never been easier to expose liability and gouge those that “have” wealth. Naturally, people who have achieved some financial success become understandably concerned about losing everything they have achieved over a lifetime of hard work. They develop a desire to take some chips off the table.
How Epiphany Law Can Help
Epiphany Law can help you decipher the scams from the real planning opportunities. Some of the legitimate planning opportunities we can help you with are moving funds to exempt assets, asset segregation, charging order protection and the use of trusts.
Whether you agree or disagree with the policy decisions that the government has made with regard to legitimately protecting your assets, you would be a fool to not take advantage of the opportunities provided. Epiphany Law can help you maximize your protection, ensuring that your legacy will be protected throughout your life and for generations to come. The Epiphany Law team will review the following with you to develop the a personalized plan for you.
- Estate Planning Analysis
- Personal Exemptions
- Gifting Strategies
- Veil Protection
- Personal Liability Risks
- Advanced Protection
Questions & Answers
Q: What are “exempt” assets?
A: Exempt assets are those assets that the government simply exempts from creditor execution. That means there are certain things that can’t be taken away from you — ever. These include arcane items, such as burial plots and cooking stoves, to the more relevant exemptions such as your homestead, life insurance or annuity contracts, and retirement benefits. Each of these has dollar amount limits and/or rules, but the point is that you want to own more exempt assets.
Q: What is a charging order and how does it protect my assets?
A: If you own assets within an LLC, in general, your personal creditors can’t attach the assets within the LLC. Thus, if a personal injury attorney sued you for everything you had, the creditor would likely not be able to get at the assets within your LLC. Rather, all that creditor gets is a “charging order” which only allows the creditor to receive assets that are distributed. So guess how many assets you’ll want to distribute if a creditor has a charging order? Yep – Zilch.
Q: What do you mean by “Asset Segregation?”
A: You generally don’t want all of your assets owned just by you or just by your business. Remember, whatever is owned by one individual/business is at risk for any lawsuit against that individual/business. Rather, put valuable assets in a different entity. For example, your operating business should not own the company’s real estate. If your equipment or patents are valuable, put those in a separate entity.