Mar 04 2010
Regardless of Income, You Should Explore Asset Protection
A lot of people consider asset protection an action for the rich. They consider Swiss bank accounts and tax havens and assume because they are working or middle class, protection is not for them. Not true! If you have any assets, it is important to have them protected. Homeowners must make an effort to protect the equity in their home, especially if their state does not provide home exemptions. Cars and other personal property should also be considered and, you need to make sure these assets are safe. Again, massive wealth does not dictate protection. An engagement ring requires protection and your inheritance is an asset. Furthermore, you may have investments in savings or stocks and bonds, all of which may be at risk should you be found liable in a court settlement or attacked by creditors. In many instances, a Cincinnati bankruptcy lawyer have asset protection knowledge. Cincinnati bankruptcy lawyers often have knowledge about how creditors behave and what will be at risk should you not protect your assets. Discuss your options for protection and your risk without it.
While some may be surprised offshore investment options are perfectly legal, others understand it is a great method of protection. There are numerous ways in which to utilize offshore options for protection. While creditors will have little problem discovering your offshore accounts, U.S. court rulings will not hold up. The investments are covered under the laws and regulations of the host country.
The only way the creditors would have a chance to access these assets is if they traveled to that country, had their case tried in that country’s court system, and received a comparable settlement to what they were seeking in the United States. It is unlikely a creditor will invest the time or money to accomplish this.
Another option for asset protection, often known as the poor man’s asset protection, is to transfer your assets to someone else. This can be a risky move, even when you trust the transferee. Should the relationship go astray, your assets go with it. Your enemy now owns all of your assets and this ownership will stand up in court. Creditors may also prove that the transfer was fraudulent.
This means the court sees you transferred these assets for the sole purpose of avoiding debt payments. While fraudulent transfer is legal, the court can simply ignore or undo the transfer and you are back where you began. To avoid being accused of the action of fraudulent transer, prepare your protection plan well in advance of needing it.
Connor Sullivan recently worked with a Cincinnati bankruptcy lawyer while conducting research for a new article. He was very impressed with the client relations conducted by the Cincinnati bankruptcy lawyers while he spent time reviewing their work.