Asset Protection Planning
Many of our clients who are in high-risk professions or businesses are concerned that in an era of outrageous judgments, their entire net worth may be at risk. Asset protection planning involves structures and techniques of assets in a manner intended to protect your assets from claims of future creditors. The goal of asset protection is to deter potential creditors from proceeding going after you, and frustrate them if they do, generally by making it difficult or impossible for the creditors to reach the assets to satisfy judgments.
Asset protection includes, but is not limited to, a review of the specific law of the state governing the asset to be protected; the income and estate tax consequences relating to any prospective transfer of ownership of an asset; and changing laws, such as those relating to self-settled trusts, tenancies by the entirety, and marital and non-marital property. Asset protection can only be effectively accomplished in conjunction with a current review of your estate plan.
Any asset planning must recognize there is a sometimes blurry distinction between "legal" asset protection planning and actions that can be interpreted as fraudulent transfers, the effect of which is to defraud creditors. It is essential to have an attorney assist you in the process.