Asset Protection Planning
Asset Protection Planning is strategic, preemptive preparation to prevent creditors from obtaining assets in the event of a civil judgment. It does not mean that a person ignores their obligations to the creditor, but it often means that a different person will control their obligations, rather than creditors controlling the person.
Personal liability is different from business liability, but sometimes the two will intermingle. The main objective of asset protection planning is to legally limit an individual’s exposure to their lawful creditors. A skilled planner will understand the options available for specific circumstances. These considerations are then built into an asset protection plan. Planning takes all of a person's assets into consideration: investments, annuities, life insurance, property, potential inheritances, income, bank accounts and businesses.
It is important to protect assets before a creditor attacks and not during the threat. It is against the law to fraudulently convey or transfer assets to avoid a judgment award. This can be a criminal charge, so we recommend that a plan is strategically developed and crafted when the financial seas are calm.
The lawyers at Kotz Sangster provide counsel to clients in order for them to plan for protection from future creditors by providing advice on the structure of the deals and the underlying entities. The advice includes reviewing the tax structure, drafting and implementation of loans and transactions, and drafting of limited partnerships, limited liability companies and corporations located in the appropriate jurisdiction. Advising clients includes balancing control, tax laws, and the short and long term objectives of the client.