Asset protection means to not to let anyone take away your property, which you have worked so hard for till now to earn it, by winning a lawsuit against you. It can involve lawsuit related to negligence that you did, like a car accident, or if you have stopped paying mortgage of a property.
What is Asset Protection Planning?
It is the method of saving your property from being taken away by someone through a lawsuit. This means that the assets which are about to be claimed by the creditor, known as nonexempt assets are converted to assets that aren’t at the claim of the creditor, known as exempt assets.
Time to Start Asset Protection Planning
Asset protection cannot begin at the time judgment creditor has already claimed. Every state protects judgment creditor against people who transfer their assets to someone else’s name. The court in such situations will see these things as a fraudulent method and will reverse the transfer and would make you that your assets are turned over to the creditor. Therefore, your protection plan should start way before the lawsuit is filed even before you can anticipate that a lawsuit is going to be filed against you.
Also, you would need to put together wide-ranging asset protection plan. You should have to make two crucial goals integrate:
- Financial goals, long term and short term.
- Planning goals for your estate.
You can consult with Gabriel Katzner and decide with them if you want to plan for your asset protection.
Common Mistake of Asset Protection
The main thing is that you cannot start your asset protection plan after the lawsuit is filed against your property or not even just before from when you can anticipate that a lawsuit is going to be filed against you. Asset protection plans are long-term goals, it isn’t any immediate plans or done for a short-term.