Have You Made One of These Asset Protection Mistakes?
If someone is seeking a money judgment against you, there are five common mistakes made by folks trying to protect their assets.
Does transferring your assets to a family member protect you from creditors? Can you be held personally liable if you fail to maintain your company’s records?
We discuss 5 common asset protection mistakes that can have devastating consequences to you and your family.
- MISTAKE #1: Transferring assets to family members or company insiders: this does not protect you, can have tax consequences for both parties, and a transfer deemed fraudulent can be undone.
- MISTAKE #2: Creating a Revocable Trust to protect your assets: while a living revocable trust is a valuable estate planning tool, it does not protect your assets.
- MISTAKE #3: Failure to Establish or Maintain Corporate Records: if you own your own business, in order to maintain the corporate shield to personal liability, you must properly set up your company and then update your corporate books and records appropriately. Accessing sunbiz.org is not setting up a company properly and does not protect your assets.
- MISTAKE #4: Adequate Insurance: if you are under-insured, you can open yourself up to personal liability. If you are over-insured, you make yourself an inviting target for potential litigants. Like Goldilocks, you must find the balance that is just right to protect your assets.
- MISTAKE #5: Waiting Until the Sharks Are Circling: if creditors are already after your assets, this is not the best time to begin asset protection. You should move to protect your assets before legal problems begin.
There are various valid strategies available to help you protect your assets and therefore become unattractive to a potential creditor. Bullard Law is experienced in what you need to maximize your wealth protection plan and preserve your personal and business assets. From general asset protection of a company or individual to protecting trust assets from creditors, predators, bankruptcies and divorce, clients will have the confidence of knowing their case is being handled by an experienced and knowledgeable asset protection lawyer.