The Best Asset Protection Strategies
The layman has some preconceived notions of what may offer the best asset protection. Surprisingly, most of the strategies commonly believed to protect assets do not, and some may even cause more harm than good.
We often get asked “What are the best asset protection strategies available?” Many people ask me to cut to the chase, especially those that are self-employed, wishing to safeguard their assets from bankruptcy, lawsuits, long-term care costs as well as many other financial pitfalls. Often these business people look to what is easy and on the surface. That which is easy and that one can do themselves is not always the best option.
Best Trust for asset protection strength
Gift Assets to Your Heirs Now
One of the first things people think of to preserve assets for their heirs is to just give it to them. The gift is already made, so the assets are safe, right? First you must wait for the 4-5 year lookback for gifts (it varies in every state). If one is within that timeframe, a creditor can convince a judge to order a clawback. Yes, a clawback is where the assets that would have been available for the creditor are forced back to the defendant in order to pay off that creditor. Assuming one get beyond the 4-5 year window, we will consider another pitfall with this strategy.
Best Asset Protection Strategies: Limited Liability Company?
Best Asset Protection Strategies: Irrevocable Trust