Tag Archives: liability

Asset Protection

Are your Assets Protected if you are Sued?

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Lawyers and financial advisors spend a lot of time telling their clients that they need to take measures to protect their assets. However, most individuals do not realize that they are at risk for being sued. As you go about your daily life, you may not even be aware of the various potential sources of potential liability you encounter.

If you own a business or otherwise provide services to other parties, you are vulnerable to a lawsuit. Even owning property, driving a vehicle or other similar activities can expose you to the risk of litigation. To determine your own personal risk of a lawsuit, visit a one of the numerous websites where you can take a quiz and get an idea of where you are vulnerable. An example is the “Personal Liability Risk Scorecard” developed by ACE Private Risk Services.

The online quizzes can provide you with a general idea of how much risk you have for being named in a lawsuit. You might be surprised by the amount of risk you have in your life. However, for an extensive understanding, let one of our experienced asset protection attorneys review your unique circumstances and assist you with creating an effective strategy for minimizing your vulnerabilities.

Don’t assume that you are not at risk for being sued or that you do not need to take measures to protect your assets. Let us help you understand and address any areas of concern. Pre-planning can save you time, money and heartache. Taking action now, before any problems occur, will provide you the most protection available.

Many people shy away from using a lawyer for asset protection because of the expense. But DIY (Do It Yourself) plans rarely work. A qualified lawyer can help you evaluate your risk and help you understand the strategies that can be employed to avoid the risk. Some obvious things are:

(a) increasing your insurance, but more importantly, the right type of insurance;

(b) if you own a business, properly organizing and operating your business; or

(c) if you own rental properties, setting up proper business organizations to own the properties in order to isolate risk.

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.

Asset Protection

Guidelines for Asset Protection Planning

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16430757_sIf you are wondering if you should be taking steps to protect your assets, you probably should. Whether you have a high-risk job or you are an average person who wants to make sure you are protected if a difficult situation arises, you should contact us to discuss your options.

Asset protection planning can take a variety forms, but all of them focus on strategies for safeguarding your most valuable assets from potential creditors. Just as important, however, is to take steps to ensure that nobody ends up in legal trouble, including going to jail for contempt or fraud for engaging in the process.

Below are a few guidelines to keep in mind when you are developing asset protection strategies:

  • Start planning as soon as possible. It is imperative that you create asset protection tools before a claim or liability arises. The longer your protections have been in place, the less likely a creditor can claim they are a “fraudulent transfer.”
  • Be wary of late planning. Any asset protection planning that occurs after a claim arises will likely make matters worse. In fact, a debtor and whoever assists him in fraudulent transfers can be held liable for the creditor’s attorney fees. You also lose any chance of obtaining a bankruptcy discharge.
  • You still need insurance. Even if you have established an effective asset protection plan, you still need liability and professional insurance. Your insurance will help pay any legal fees, pay to settle claims, and even help you survive a fraudulent transfer claim.
  • Business entities protect business assets. If you form a corporation, partnership or limited liability company, it should be used to protect business assets. Placing your personal property in a business entity does not ensure they are protected because an entity can be pierced by a creditor under a theory of “alter ego.” If successful, the creditor will have access to your personal assets. It is much smarter to create a trust to protect your personal property. However, many people misperceive that their estate planning trust protects their assets. This is not the case. Only certain types of irrevocable trusts work for asset protection.
  • Don’t keep too much control. An effective asset protection plan strives to provide you with sufficient control so that the assets don’t disappear, but not so much control that other parties can argue that you and the asset protection tools are one and the same.

If you are interested in exploring your asset protection options, call us today. 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.