Asset Protection
Protect the life you've built, secure the plans you've made, and safeguard your dreams.
There are different ways to protect your assets. No one option fits every situation. Some common methods for asset protection include Limited Partnerships, Family Limited Partnerships, LLCs, and some types of Trusts such as the Beneficiary Defective Inheritor’s Trust or the Domestic Asset Protection Trust. The best way to determine the right method of asset protection for you is to discuss your objectives with a qualified asset protection attorney.
Domestic Asset Protection Trusts
This is a type of irrevocable trust that is self-settled and acts like a spendthrift trust which doesn’t allow for the appointment of the trust assets to your creditors and permits you to be a beneficiary. Simply, it is a trust you can set up to protect assets from your future creditors and lawsuits against you. There are currently 13 states that allow for self-settled Domestic Asset Protection Trusts. Unfortunately, California is not one of them; that doesn’t mean that you can’t set one up in another state such as Nevada, Delaware, South Dakota, or Alaska. For your protection, we can set up this structure far in advance of any creditor problem. Each state has its own statutory waiting period from the date the asset is transferred to the domestic asset protection trust, and when the asset is protected from a creditor’s claim. There is an increasing liability exposure, many professionals are fearful of malpractice lawsuits today.
Just implementing a Domestic Asset Protection Trust would stifle most plaintiffs. Here at First Class Counsel, we also use additional asset protection strategies that can be utilized to significantly increase your asset protection if used in conjunction with the domestic asset protection trust. By adding one or more Limited Liability Companies (LLCs) to the mix, we can limit a creditor’s remedy to a “charging order” in some jurisdictions. Come in for a consultation with one of our attorneys to discuss the details.
Our asset protection attorney at First Class Counsel can assist you with keen strategies to save your hard-earned money.
Asset Protection Planning for Commercial and Rental Real Estate
The basic idea behind this plan is the use of business entities to create a legal separation between you and certain assets. These entities, typically Limited Liability Companies, can also be great vehicles for privacy, tax and estate planning objectives. The more properties you own, the more likely you are to become the party to a lawsuit. At First Class Counsel, we can set up an asset protection plan as you begin to own commercial or residential property.
There are a variety of ways in which a property owner can lose their hard- earned assets to even just one successful lawsuit. Don’t take the risk, come in for a consultation today. Ideally, for the best asset protection, you want to place each rental or commercial property in its own separate LLC. We can design an ideal plan that saves your money and assets you worked So hard to earn.
At First Class Counsel, We Fight to Protect You & Your Business.
Asset Protection for California Business Owners
Asset protection planning involves making prudent decisions today to protect yourself, your business, and your hard-earned assets from loss due to lawsuits, creditors, or bankruptcies. This type of legal planning is especially prudent for professionals and business owners whose personal assets could be at risk due to the nature of their employment. In some unfortunate circumstances, wealth created through a lifetime of work, saving, and investing can be lost overnight. To protect your assets from unexpected disasters, proper risk management strategies should be given careful consideration. These strategies include exempting your assets from the claims of creditors, limiting your liability through legal entities, and transferring your risk through insurance.
State and federal laws exempt some of your assets from creditors’ claims. While some states allow you to choose either the state or federal exemptions, in California, Federal bankruptcy exemptions are not available, and you must use the state exemptions. Once we identify the protected asset classes available to you under applicable law, we can maximize your protection by converting non-exempt assets into exempt assets.
At First Class Counsel we can Limit Liability for Professionals & Business Owners alike. Many entrepreneurs operate their businesses as sole proprietors rather than through a legal entity like a corporation or a limited liability company. Whether their business is home-based or in the Fortune 500, these business owners are attracted by the informality of sole proprietorship. They also want to avoid incurring the fees associated with creating and maintaining a legal entity. However, in addition to other advantages, conducting business through a legal entity may offer substantial risk management benefits. Lawsuits brought against a sole proprietorship are actually lawsuits against the owner’s personal assets, while lawsuits against a properly established and maintained legal entity are considered lawsuits against the entity’s assets.
The selection of an appropriate legal entity is critical for managing your risk. Let us assist you with this important choice.
The best way to determine the right method of asset protection for you is to discuss your objectives with our attorneys today.
