If you are interested in asset protection tools, it is important to seek legal advice from an attorney. There are several options for correctly and legally protecting your assets, but there are also many ways you can get yourself into trouble if you do not do it properly.
One of the key steps in asset protection is timing. You can accomplish the most when you do not have any potential liabilities. In other words, if you have known creditors and you take action to protect your assets, your activity could be seen as a fraudulent transfer or conveyance.
A fraudulent conveyance occurs when an individual attempts to transfer assets outside of the reach of a creditor. A common example occurs when an individual transfers a valuable piece of property to a relative so it is no longer owned by that person and the property is outside the reach of transferor’s creditors.
A common misunderstanding is that a transfer cannot be fraudulent if the asset is “sold” to a third-party. However, if you transfer the property for less than its full value, it can still be deemed to be an improper transfer. For example, if you sell a piece of artwork for $100 when it is valued to be worth $6,000, creditors that are harmed by this action could argue that the sale was a fraudulent transfer. It’s also important to know that you don’t have to commit fraud to have a “fraudulent transfer”. For example, it’s not unusual for spouses to transfer assets between themselves for estate planning purposes. But a transfer for less than full value can still be a fraudulent conveyance from a creditors viewpoint.
It is important to understand that there are numerous ways we can help you protect your assets. A few examples include creating a:
- Limited Liability Company
- Family Limited Liability Company
- Limited Partnership
- Offshore Trusts
- Other forms of ownership entities for your assets
If you are interested in learning if now is the ideal time for you to take asset protection measures, contact our office to schedule your appointment.
The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.