Picture this: You fall behind on your debt payments because of something out of your control. A creditor then sues you and receives the money you owe through your assets. This leaves you without a home, car, etc.
This is not a good picture. Luckily, with asset protection, you don’t have to worry about this possibility becoming a reality. You can protect your assets on your own but the process is daunting and confusing.
Your best bet is to hire an asset protection attorney who has your best interest in mind. Read on to find out more about asset protection.
What Is an Asset Protection Attorney?
An asset protection attorney has experience with helping people find legal ways to protect creditor claims, liabilities, lawsuits, and bankruptcy.
You can expect to make the most out of asset protection when you hire a lawyer and stay within the law. These attorneys may also be referred to as trust lawyers and estate lawyers.
Here are five ways you can benefit from hiring an asset protection lawyer.
1. They Understand Asset Protection Laws
You should hire an asset protection attorney because they will have all of the knowledge necessary to safeguard your assets and properties. The laws they understand include wills, probate, property rights, trusts, and taxes.
Asset protection is more complicated than one may think. You may have an idea of the laws surrounding it but not understand fully.
You can protect your assets from lawsuits with the help of a lawyer that can go over the basics with you.
Keep in mind that not every lawyer will understand these laws that well. That’s why it is essential to hire an asset protection lawyer specifically.
2. They Can Create an Asset Protection Plan
If you want asset protection, you need to hire an attorney who is ready to create a plan. A plan will help you ensure properties and assets are safe without the added hassle.
A lawyer can create a plan based on your short and long-term goals. If you have any issues or concerns, they can assist you with this process as well.
3. They Can Implement the Right Protection Strategies
Aside from knowing the laws and regulations in your state, an asset protection lawyer knows working strategies as well. Before getting into the strategies, they will consider your financial situation because it may affect the status of your assets.
After going over your finances, they will review which properties can be protected, transferred, and subjected to a lawsuit. Always be honest about litigation that could come about in the future.
Without the proper knowledge of your current and potential future situations, an asset lawyer cannot implement the right protection strategies.
Here are a few common strategies an attorney may tell you to implement:
Limited Liability Company
A lawyer may recommend that you make a limited liability company (LLC) if you are a business owner. This can shield personal assets from expensive lawsuits or creditors that may take advantage of your business.
An LLC comes with limitations as it creates a separate identity for the business and its owners. You will still be liable for any debts that may occur from your company including bankruptcy.
However, these debts won’t affect your personal account or family home. If someone files a claim against your business, personal assets will also be protected.
An asset protection attorney may recommend using liability insurance as the first line of defense. This type of insurance will protect the buyer from lawsuit liabilities.
If you don’t have this already, an asset protection lawyer will recommend it. Liability insurance can be used for homes and businesses.
Retirement Account Contributions
Maximizing your contributions to retirement accounts, pension plans, etc., is a smart move to shield your assets from potential lawsuits and creditors. Money deposited within these accounts is not subjected to lawsuits or court judgments under federal ERISA laws.
Legal Procedures and Agreements
Without legal contracts and procedures, you’ll risk losing your assets to creditors. A licensed professional can draft these agreements for you and ensure you are following procedures correctly to keep assets safe.
4. They Help Before a Lawsuit
Even though there are ways to protect your assets after being sued, you’ll get through the process much easier by hiring an asset protection attorney beforehand.
As we’ve noted, asset protection law is complicated. It is hard to block creditors from gaining your assets during a lawsuit. You must hire an attorney before any problems arise to achieve asset protection.
5. They Work Based on Your Needs
Whether you need an asset protection plan for yourself or a business, an attorney should base their work on your needs. The plan a lawyer creates and the strategies they implement should vary depending on your situation.
Hiring a Lawyer for Your Assets
No matter what your current status is, you can benefit from hiring an asset protection attorney. That’s right, anyone can protect their assets or properties when they want to. You can protect your home, car, savings account, etc.
The process is complicated which is why we stress the importance of understanding the law and working with a professional.
You should always stay ahead of the game when protecting your assets. If you start now, you can avoid problems if you ever run into a lawsuit or needy creditor.
Don’t think about asset protection when it’s too late. Contact us today to learn how our asset protection attorneys can help you personally.