Asset protection planning is designed to safeguard your assets from threats like creditors, divorce, lawsuits, and judgments. Contact an asset protection lawyer buffalo, NY, to safeguard your assets!
Asset Protection Planning
To understand what assets protection planning is including what an asset protection attorney does, you need to understand what asset protection really is. So what is asset protection?
According to investopedia, asset protection is a concept of and technique adopted to safeguard ones wealth. The primary aim of asset protection is to safeguard the wealth, property, including other assets from creditor claims. Asset protection techniques are adopted by individuals and corporate bodies. This protection technique helps reduce the access of creditors to valuable assets and properties in a legal way.
Contrary to what some people think, asset protection planning is not only for the wealthy. Just like estate planning, asset protection planning is for both the rich and the poor. According to elder law, anyone can face a lawsuit. Lawsuits can come from different places, and they include car accidents, credit card debts, unhappy customers, etc. Coming out second best in a legal dispute, and sometimes just facing the process, could ruin your finances.
The Perfect time to Act
An asset protection scheme should start before a lawsuits is filed. The law makes it very challenging to restrict current creditors from accessing assets, and applying protective measures when a lawsuit is on.
There are several ways to protect yourself after a lawsuit, but it is wise to do so beforehand. Court can undo the transfer of several assets into protected accounts under the control of an individual within their jurisdiction. For this reason, it is essential that to start creating you plan now before it is too late. In addition, if you are already embroiled in a lawsuit, there are international trust structures that can safeguard your liquid assets from creditors.
Who is an Asset Protection Attorney?
An asset protection attorney is a lawyer who is experienced in assisting clients find legal ways to safeguard assets when lawsuits, bankruptcy, Creditor claims, including other liabilities arises. The experience of this lawyer allows them to talk about the pros and cons of certain asset protection tools with their clients. Some of these protection tools or gadgets are corporate structures, assets protection trusts, including retirement plans. Asset protection attorneys can provide you with legal advice that will assist you in making an effective asset protection plan. Also, they can help in ensuring that the plan is legal and within the confines of the law.
An asset protection attorney can be called several names from broad to specific. These names ranges from estate lawyer, rust attorney, etc. Due to the sensitive and often complex nature of asset protection, not all law firms boast of lawyers that specialize in it. There exist laws and regulations specific to protecting your assets from creditors and making a long term protection plan. Therefore, the attorney you hire must have an in-depth understanding of these laws to help you draft a good plan.
Why do you need Asset Protection?
If you have already carried out some research regarding how to create an asset protection plan, you might have encountered some do-it-yourself kits. These kits boasts that they can help you with complicated matters such as setting up a will, trust, power of attorney, etc. They indicate that you can pull it off without the assistance or guidance of a legal professional like an asset protection attorney or an estate planning attorney. Of course, these options may seem enticing because of the huge legal fees associated with hiring an attorney.
However, it is important that you consider the consequences down the road if you make a mistake. Maybe you put the wrong assets in the wrong legal tool, you could then be faced with the challenge of battling a legal dispute and assets seizures that could ruin your effort to protect your assets.
According to the American Bar Association, anyone who desire to protect his or her assets must hire a qualified estate lawyer as only they can interpret the laws. They are laws that are formed around property rights, taxes, wills, probate, and trusts. A DIY asset protection kit doesn’t provide an individual that will scrutinize the asset protection plan to ensure that all is ok. An expert asset protection lawyer can help ensure that the assets are well handled, assess state laws, and take care of important personal needs.