1) Act before you have a problem.

The best asset pretection planning is done before there is a specific threat to your assets. Judges are not sympathetic to asset protection techniques invoked after there is an identifiable creditor or a matured liability.

2) Limit your exposure to liability, avoid general partnerships and loan guarantees.

It is tough enough to protect yourself from your own acts, why accept responsibility for the acts of others?

3) Own your home and other jointly held assets in joint tenancies by the entirety.

This form of ownership protects property held in the name of husband and wife from the liability of either husband or wife.

4) Set aside a nest egg that cannot be claimed by creditors because it is in:

1. Life Insurance,
2. Assets protection trusts, or
3. Exempt retirement plans (but not all retirement plans are exempt).

5) Protect loved ones with gifts in a spendthrift trust.

This form of trust provides that creditors of a beneficiary cannot claim assets in the trust. So if, for example, in-laws become outlaws, they cannot claim assets in the trust as part of a divorce settlement.

6) Wrap a corporate veil around hot assets and activities.

Create LLCs, LLPs and corporations as a shield. This will limit liability to assets in the corporation creating the liability.

7) Carry sufficient personal and professional liability insurance.

Find an insurance broker you trust and listen to them.

8) Think twice before becoming a corporate officer, a trustee, or a corporate director.

Once again, think twice before assuming potential liability.

9) If you have a lot to lose, think about multiple entities and offshore entities.

For those with lots of money, high visibility and a risky business or profession.

10) Seek the advice of a compenent professional who has substantial experience dealing with the complex issues involved in good asset protection planning.

Please contact us to discuss how we may be able to help.

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