Asset protection shields your assets from potential creditors. You do not need to have a large amount of assets either to need asset protection planning. “Shield your assets from what?” You may ask. The answer – creditor claims. Individuals and businesses use asset protection planning to limit the assets available to creditors should creditors have a cause to come after those assets.
Asset protection is not something merely used by rich individuals and large businesses. Every individual Tennessee resident has the potential for liability if he or she is in an auto accident, if an accident occurs in his or her home, or if he or she end up in a divorce.
Accordingly, best practice is to take stock of your assets and protect them in advance from potential creditors. The best way to achieve that is to retain an experienced attorney who is knowledgeable about asset protection planning. John R. Foust, serving East Tennessee, has the kind of experience in asset protection planning that can give you the best chance of protecting your valuable assets from potential creditors. Call him today at 865-203-4041.
Asset protection allows you to insulate your assets legally. People often try to hide assets when creditors come knocking through concealment, contempt, fraudulent transfers, tax evasion, or bankruptcy fraud. Those practices, however, are fraudulent and a court of law will easily unwind the transaction.
The key to lawful, appropriate, asset protection is to design a way to protect your important assets before a claim of liability occurs. Remember, once a claim is made, or liability against you is established, any move to protect your assets will likely appear as a fraudulent transfer. A court could very easily unwind whatever asset protection transaction you attempted to initiate.
No matter the size of your estate, it is recommended that you consult an attorney to discuss proactive asset protection.
Your personal potential liability may not always be at the front of your mind, but bad things happen to good people and your personal insurance may not cover catastrophic damage. It is always best to be prepared. As noted above you may face liability from sources such as auto accidents, slip-and-falls, accidents around your home, and other accidents.
If you own a business, asset protection can be invaluable for continued viability. Businesses face many potential liability threats. Don’t let your business’s debts become your own.
The first step in designing a strategy to protect your assets is to retain a qualified asset protection attorney. After consulting with your counsel, you may consider some of the following measures to make it difficult for creditors to reach certain assets:
The bottom line when it comes to asset protection planning is to start before a claim, lawsuit, or problem arises. If you try to protect your assets after a claim has been made, or a lawsuit filed, then it is already too late. Any attempt to do so will likely backfire, as a court will easily see your motive in moving assets.
Moreover, asset planning is legal and ethical. Some may consider a plan to “hide” assets from potential creditors smacks of avoiding your obligations. That is not the case. In an increasingly litigious world, where individuals may go after someone solely because they have “deep pockets,” asset protection is a reasonable, acceptable, and ethical form of wealth planning. It is designed to protect both you and your loved ones.
Attorney John R. Foust cares about his clients, and he works hard to make sure that his clients are able to enjoy the asset portfolio they have worked hard to create. Let John work for you. With his knowledge of asset protection, John can give you valuable options to help keep your assets from falling prey to creditor claims. Call today at 865-203-4041.