Liability exposure can be devastating during your lifetime and disrupt wealth transfer upon your death. Personal liability arises from many places, such as a high liability profession, running a business, lawsuits, bankruptcies, bad investments or business deals, economic downturns, etc. With proven methods we can help you implement an asset protection plan that works, is flexible, and simple to understand and operate.
There are a handful of amazing tools which can protect your most important assets such as your home, savings, and more. We have years of experience and understand the law and precedent supporting the best asset protection strategies.
Asset Protection Trusts
The best way to protect assets from personal liability exposure is with an asset protection trust. An asset protection trust allows you to take some “chips off the table” so they are not subject to your potential risk exposure. Everyone is different and your asset protection trust is designed specifically for your unique situation. This may be a Self-settled Domestic Asset Protection Trust or a Third Party Asset Protection Trust. Other types of trusts which are designed for advanced estate tax planning also provide asset protection.
Limited Liability Companies (LLCs)
Operating businesses should absolutely be organized in some business form, such as an LLC or a Corporation. This creates a “veil” between the business and the business owners. The liability exposure arising from the business operations remains inside the business. If operated properly, the “veil” cannot be pierced which protects the business owner’s personal assets from liability arising inside the business. Many people own rental real estate, which is best owned by an LLC to isolate the liability from the owner’s personal assets and is more flexible for taxes.
Equity Stripping
Equity stripping is where you establish liens on assets with equity to limit the exposure to potential future creditors. By having a lien to a friendly creditor, you can further protect assets.
Insurance
We don’t sell insurance, but we’re big proponents of it. It’s your first line of defense. We advocate that you get adequate coverage and not just the lowest premium. Make sure you have insurance for your most common liability sources such as vehicles, real estate, business operations, professional liability etc. We also highly recommend that you have an umbrella policy.
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