Shielding your assets from the claims of potential creditors is best accomplished with an asset protection plan. An asset protection plan can protect your hard-earned assets against unforeseeable and uncontrollable events and situations. It can be kept simple if need be. Start with umbrella liability insurance and hold assets in forms that are exempt from judgment execution.
However, asset protection can get much more complex. One of our most practiced areas is the cost-effective use of limited liability entities. This planning involves the use of trust protector provisions with binding offshore and domestic asset protection trust. However, even a regular revocable grantor trust, if completely subsidized, confers a degree of asset protection once the grantor passes.
What are the risks?
The first thing you should do when seeking out an asset protection plan is to determine the risks. If you own a small business, does the company’s structure put you at an unwarranted gamble of paying for the faults of others? Look at the type of business you run and try to research what sorts of lawsuits are being brought against businesses of its likeness. Is your business particularly risky, like a mountain climbing or bungee jumping concern? Do customers come onto the company’s premises? If so, are the premises frequently maintained and kept safe? If a select few of your customers go into bankruptcy or switch providers, is your business at risk of collapse?
The Florida personal asset protection lawyers at David F. Anderson, P.A. will assist you in risk evaluation and determine some cost-effective steps to diminish them while keeping your business strong and healthy.
Protection from unavoidable business risks
It is apparent to our Florida personal asset protection attorneys that some risks cannot be avoided. No matter how much planning you do will prevent an accident from happening on your premises or a key client going broke. Some steps you can take to keep your hard-earned assets from endangerment include:
- Limited liability and corporate structures prevent plaintiffs and creditors alike from effectively chasing your personal assets in nearly all situations. If you run a general or limited partnership or a sole proprietorship, think about changing to become a limited liability company, limited liability partnership, or corporation.
- Consider transferring the assets from one of your more substantial accounts to someone you trust. If a creditor or plaintiff comes after you, they cannot take what you do not own. If your assets are in your spouse or children’s names, they will be much safer than in your own.
- If you run a business with a lot of risks, think about increasing the coverage of your insurance to cover more or the entirely of a settlement or a court award.
- Seek out the help of a Florida personal assets protection lawyer to discuss the possibility of the creation of an irrevocable trust or a LLC to defend your assets against all possible risks.
It is important to remember that asset protection planning must happen before an incident occurs. Once a lawsuit comes into play, a bad situation could be made worse by having a transfer of assets may contested as a fraudulent transfer.
Protection of assets with nursing home planning
Assets may be at risk when a family member needs extra medical care, like that in a nursing home. There are a number of ways to diminish these assets while still assuring that your relative receives proper care. These include:
- MediCal-Medicaid Grants
- Guided permissible transfers
- Care contracts
- Specialized trusts
Because of new rules, you should start protecting your assets with nursing home planning as soon as you can. By conserving assets, an ill family member’s care can be brought to a higher level while protecting the family’s finances. We aim to get rid of the financial hardships that healthy family members face when an ill family member needs specialized care. Contact a Florida assets protection lawyer at David F. Anderson, P.A. to ensure that assets can be saved instead of paying steep nursing home costs.