Protecting Assets From Creditors Lawyers

Authored by , LegalMatch Law Library Managing Editor and Attorney at Law

Find a Lawyer

What Is Asset Protection Planning?

Asset protection planning involves applying a lawful series of techniques to protect your assets from claims of future creditors. These techniques are designed to deter potential creditors from going after you by making it difficult or impossible for them to grab hold of your assets or collect judgments against you.

How Does Asset Protection Planning Work?

In cases where significant sums are involved, asset protection planning often includes setting up a series of trusts, partnerships and/or off-shore entities to hold legal title to your assets. A future creditor who recognizes how difficult it would be to collect on any judgment it may win might decide it makes little sense to pursue a claim or might be willing to settle for pennies on the dollar.

What Are Some Simple Asset Protection Planning Techniques?

Many of the traditional forms of estate planning can be used effectively as asset protection techniques. These include:

How Do I Know If I Need To Employ Additional Asset Protection Techniques?

The best option is to meet with an experienced lawyer and perform an asset risk analysis to assess both the likelihood and extent of your exposure to risk of attack by creditors. Together you and your lawyer (perhaps with input from other professionals, like an accountant) will then evaluate the various risks and exposures you face, and figure out how far you are willing to go to protect your assets from attack. Essential factors to consider when you are your lawyer develop a strategy for asset protection include:

Do I Need An Attorney To Assist With Asset Protection Planning?

There is a very sharp dividing line between "legal" asset protection planning on the one hand, and actions to defraud creditors (which are criminal) on the other. For that reason it is essential to have an attorney guide you through the process. Additionally, a lawyer experienced with estate planning and asset protection can help you identify your risk factors and assess what kind of asset protection you need.

Consult a Lawyer - Present Your Case Now!
Last Modified: 01-28-2014 02:56 PM PST

Find the Right Lawyer Now

Did you find this article informative?

Link to this page

Law Library Disclaimer

Protecting Assets From Creditors Lawyers,  asset protection planning,asset protection technique,asset protection,protection planning ,protection technique,future creditor,risk attack,asset,protect,law,protection,planning,assets,creditor,technique,business,attack