Whether your net worth places you in the wealthy, or simply comfortable categories, the fact is that you own valuable property that you want to keep. For that reason, it is well worth your time to meet with one of our qualified asset protection attorneys at the StoneCrest Law Firm to discuss protecting your assets.
Not surprisingly, since everyone has different assets, there is no “one size fits all” protection plan that will adequately safeguard your property from creditors. Rather, effective planning requires a proper fit between what you should protect and how you should protect it. The structure of an asset protection plan can be relatively simple or highly sophisticated, depending on such variables as:
- whether you are in a high-risk profession: one that is prone to lawsuits (such as stockbroker, doctor, financial planner, etc.)
- whether you have material (over $500,000) liquid assets or total assets over $1 million
- whether you are an owner or partner in a closely held business, and
- whether you are married or contemplating marriage
An effective plan may incorporate several protection elements that address your needs. To begin the planning process, you will first need to identify your assets.
Asset Inventory
What are your assets? Anything of commercial value, that can be liquidated or converted into cash, or may ever be worth something, is an asset. Common examples include (1) your house or vacation home; (2) car or boat; (3) collectables; (4) jewelry; (5) children’s college fund, stocks and bonds, savings account or certificates of deposit; (6) interest in a partnership, trade or business; (7) copyright or patent ownership; and (8) retirement plans or life insurance policies.
Each of these interests represents property that may be seized by your creditors. Certain assets carry higher risks of creditors’ attacks than others because the assets themselves are more commonly the source of lawsuits, and it is recommended that you separate those high-risk assets from low-risk assets. For example, if you own commercial real property, such as an office building or an apartment complex, you may be a target for “slip and fall” or other civil lawsuits. For other assets, like stock ownership in a large public corporation, your liability is usually limited to losing the price you paid for it, should its value plummet.
Depending on which state you live in, there are statutory protections in place that either permit creditors to reach certain assets, or bar creditors from doing so, particularly in the areas of homesteads, annuities, cash values of life insurance, retirement plans, and spousal property. Federal law also dictates certain protections for qualified retirement plans (401k, IRA, or others). If you live in a community property state, the laws governing creditors’ claims are very different from those in states that follow the common law.
Contact us today at 916.999.1376 to schedule your free confidential initial consultation to speak with one of our experienced estate planning asset protection attorneys to see what we can do for you to protect your assets.