You spend your entire life working towards financial stability and property acquisition. While you can feel secure in your assets, it only takes one successful lawsuit to undo it all. The United States is the most litigious country in the world, with 90% of all lawsuits worldwide originating here. Once you understand this, you may realize that finding and hiring a New York attorney with experience in asset protection is incredibly important. These attorneys can show you the best ways to protect yourself from litigation in the future. The ultimate goal of an asset protection attorney is to protect your assets so that they can be passed on to your loved ones.
What Does Asset Protection Planning Mean?
Asset protection planning is how you protect your assets against anyone making legal claims against them. This includes litigants filing lawsuits and creditors. Asset protection planning aims to maintain your estate and help you pass it on to your chosen beneficiaries or heirs, legally avoiding the usual probate court proceedings. This is also known as estate planning , and it is the goal of an attorney to assist you in estate planning to preserve your estate and assets.
As part of your job, an best asset protection lawyer will follow up on all of your current and future creditors to provide you with an accurate assessment of the risks you face. They also help you plan the right estate planning structure in relation to your needs. This is the necessary first step in securing your assets for the future.
However, estate planning and asset protection go further. Along with evaluating your assets and finding ways to protect them from potential litigants, estate attorneys can devise plans to keep your assets out of court jurisdiction and can also use strategies to minimize the taxes that may be levied on your estate.
Who Could Sue Me?
You will be surprised how many people have the potential to sue. Although it varies depending on your personal situation, the list includes (but is not limited to):
A spouse, ex or current
As a business owner, your partner or any of your clients could sue for a variety of reasons such as FLSA lawsuits.
It could also be sued by shareholders. Or, if you are a shareholder, you could be sued by another shareholder
You could be sued if you are involved in an accident or if it takes place at your work or home. In such cases, you could also be sued if you do not have the appropriate type (s) of insurance.
Banks can sue for credit card debt
Any litigation from these or other sources can quickly drain your finances and, if you lose the case, will take away some or all of your assets. That is why it is best to analyze your asset protection planning well in advance of potential litigation. By the time they do sue, it’s probably too late to reduce the damage by a significant amount. Many people don’t realize this and only learn the real value of asset protection planning once someone has taken action against them. But if you start to protect yourself beforehand, you will know what to do to minimize your exposure to risk. You’ll be in a much safer place when you partner with an asset protection attorney and begin a plan to structure your assets safely against lawsuits.
Who Is Most Likely To Be Sued?
Because lawsuits generally end with the transfer of wealth from one party to another. Some people are at greater risk than others. This includes people who are perceived to have a lot of money, such as business owners. Or those in occupations that carry great responsibility, such as medical professionals. However, this does not mean that people who do not fall into the above categories are “safe,” and it is important to plan ahead, even if you think problems are unlikely. A good attorney will be able to adjust your asset structure according to the changes in your life. These preventative measures are the easiest way for you to stay ahead of the risks that threaten your assets.
Also Read: 5 Ways You Can Fund Your Business
How Can A Lawyer Protect Himself From Creditors?
Anyone who has ever had to deal with a creditor knows how aggressive they can be. Fortunately, there are a number of different legal strategies. That attorneys can use to protect you and your assets from creditors. Many involve the creation of a trust. Such as a foreign trust, an irrevocable trust, a domestic asset protection trust, and special needs trusts.
Other popular options are gifts and home exemptions. An attorney can explain the pros and cons of each option. But, ultimately regardless of the specific structure you follow for your assets. An attorney manages your assets in a way that helps you avoid losses. That may result in future lawsuits while giving you considerable tax advantages.
