How to think about asset protection

Effective asset protection amounts to knowing your rights and planning. What are you protecting your assets from? The answer is creditors, lawsuits, bad decisions, bankruptcy, divorce, bad luck and anything else that comes your way. Essentially, you are protecting your hard earned assets from the uncertainties of life.

You should begin planning ahead of time, rather than once a threat emerges, but it's rarely too late to strengthen your hand. This is where we come in. We have helped hundreds of clients just like you, know the ins and outs of the law and will fight for you.

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who do the following strategies apply to?

Not everyone needs asset-protection planning, but there are groups with greater exposure and risk. Such groups are real estate owners, doctors, attorneys and officers of companies. Add to those groups anyone with significant means and there is a meaningful population that is, or at the very least should be, concerned with asset protection.

The strategy we help you craft depends upon your risk profile. Everyone with wealth is at risk of losing it. Have you ever heard of a homeless person being sued? Probably not. Those with wealth, though, are often targets. Lawsuits, economic downturns, failed marriages and plain bad luck constitute exposure to financial risk.

It is never too late to fight back as there are always strategies you may employ... even after a credit event has occurred. This would be the equivalent of being able to buy fire insurance even after one of the rooms in your home has caught fire. There are downsides to waiting, but the point is that it’s rarely too late and you thus shouldn’t resign yourself to losing. The key is finding the right law firm to help you understand your rights. That's us.

domestic asset protection trusts

Asset protection trusts functions as boxes into which you place your assets. When you create the box, you create the rules governing how the assets are to be used and who can benefit from them. We offer self-settled trusts to residents of EVERY state. Essentially, a trust you create with your own assets for your own benefit, but which still provides protection from creditors. These domestic trusts are ideal for those desiring an added layer of privacy and protection, but who wish to avoid the scrutiny, risks and uncertainty surrounding offshore trusts.

solo 401k llc & Self-directed ira

Our set-up allows you to invest retirement funds into an LLC. A self-directed retirement fund provides several advantages over traditional retirement funds, or keeping money outside of your retirement estate altogether. This arrangement provides a wider range of investment opportunities via the LLC. You also bypass the hassle of involving a custodian and their associated fees when making investment decisions. Further, the LLC is owned by the retirement fund and is thus not subject to seizure by creditors, and all income is tax-deferred for so long as it remains in the fund. Follow this link to learn more about Solo 401k LLC investments.

medicaid asset protection trust

Can you afford the cost of long term care? At an average of $74,280 dollars per year not everyone can or even wants to pay such outlandish sums for essential healthcare services. Our Medicaid Trust allows you to retain control over your assets, including your home, while still qualifying for Medicaid. We have seen many people forced into bankruptcy or divorce because of poor Medicaid planning. Before making life-changing decisions regarding medicaid planning you should contact us.

corporate structuring

Often overlooked, corporate structuring is simple yet effective. A simple corporation sometimes suffices pre-revenue, but eventually assets and liabilities should be smartly segregated. This consists of forming multiple corporations and one or more holding companies. This allows cash and other assets to be kept safe from seizure. Structuring can complement, or even replace, some of the methods discussed above. No situation is the same, so browse our structuring page, and contact us about what you have in mind.

closely held insurance company (CHIC)

A CHIC is an insurance company formed by an individual solely to insure his or her own businesses. They present numerous tax and risk management benefits, in part by opportunistically taking advantage of underwriting opportunities. To be clear, these are not an insurance product, but an insurance company wholly owned by you. This offering is not for everyone, however, as the cost begins at $100,000.

resource articles

These are articles for those desiring further reading. They are not central to what's above, but can supplement your knowledge if you so desire.

final thoughts

Asset protection strategies span the gauntlet from insurance policies to self-settled trusts. If you know exactly what you need, good. If not, that's fine too. Contact us today and we will help you wade through the alphabet soup of options. It's never too soon and it's never too late.