| For most of us, asset protection consists
| |
| | There are several reasons for this. First
|
| of the insurance policies we buy to
| |
| | of all, personal injury lawyers, in spite
|
| protect our home and its contents and our
| |
| | of their reputation as sharks, really
|
| autos. These policies have the added
| |
| | don't want to throw defendants out of
|
| benefit of providing you a defense as
| |
| | their houses, even if they could. They
|
| well as source of funds to pay damages if
| |
| | rather go for the low hanging fruit - in
|
| you cause an accident.
| |
| | this case the proceeds of your liability
|
| The law also provides various means of
| |
| | insurance policy.
|
| asset protection, ranging from "homestead
| |
| | They know that unless you were drunk or
|
| exceptions", protection of ERISA
| |
| | grossly negligent, any liability award
|
| retirement funds from creditors, joint
| |
| | can be discharged in bankruptcy. They
|
| property ownership, bankruptcy and more.
| |
| | also know that many states have
|
| There are other types of asset protection
| |
| | "homestead laws" that prevent the seizure
|
| that are used by wealthy individuals to
| |
| | of your home and that the money in your
|
| shield their assets from creditors or the
| |
| | retirement plans are protected by varying
|
| tax man.
| |
| | degrees, depending on the state you live
|
| They are popular with professionals, who
| |
| | in.
|
| can lose everything through a simple
| |
| | In most cases, they will settle for the
|
| error of judgment.
| |
| | insurance policy limits, even if they are
|
| Business and property owners may use them
| |
| | lower than what the case might be worth.
|
| as a tax shelter and/or estate planning
| |
| | However, especially in cases with severe
|
| measure, as well as a way to avoid
| |
| | injuries, the lawyer might have no choice
|
| creditors.
| |
| | but to pursue your personal assets if
|
| The problem with most asset protection
| |
| | your insurance coverage is not adequate
|
| schemes is that they are expensive to
| |
| | and you do have other assets to attach -
|
| implement and maintain, almost always
| |
| | don't forget your wages are an asset and
|
| forcing you to give up all or part of
| |
| | can be garnished.
|
| your ownership in the asset you are
| |
| | For this reason, anyone with a good
|
| trying to protect and, in many cases, are
| |
| | income and the usual collection of
|
| illegal to boot.
| |
| | assets, for example a home, car, IRA's,
|
| Trusts, different corporate and
| |
| | other savings and investments, some
|
| partnership entities and off-shore
| |
| | original art, silverware, jewelry, etc
|
| accounts are popular in this field.
| |
| | should carry at least $1 million in
|
| If you are one of those who feel they
| |
| | liability coverage, maybe more if you
|
| need this kind of protection, consult a
| |
| | live in high verdict states like
|
| very well qualified lawyer - a CPA by
| |
| | California and New York. Your insurance
|
| himself won't do. And apply common sense.
| |
| | agent should be able to advise you on a
|
| A lot of so-called professionals in this
| |
| | prudent liability limit.
|
| field have wound up getting their clients
| |
| | This can be done by buying single limit
|
| indicted or into serious tax problems
| |
| | liability coverage of $100,000 on your
|
| because of miscalculations they have
| |
| | auto insurance and homeowner's insurance
|
| made.
| |
| | policies. You then buy an umbrella policy
|
| There is also an abundance of fraud,
| |
| | with a $100,000 deductible. If you do
|
| especially with off-shore accounts. The
| |
| | this all through one agent, he can tie
|
| money you deposit into an off-shore trust
| |
| | everything together so that your coverage
|
| might simply disappear.
| |
| | to a million or more is seamless.
|
| Don't forget the IRS has been subpoenaing
| |
| | Property Transfers
|
| the names of people who just bought books
| |
| | If you have already had an accident or
|
| about off-shore investing from the
| |
| | have been sued for some reason, it is too
|
| so-called gurus of this field and are now
| |
| | late to try to transfer property to
|
| delving into their finances.
| |
| | another. It will likely be ruled
|
| Finally don't trust that the
| |
| | fraudulent, as will transfers made
|
| lawyer-client relationship will protect
| |
| | shortly before a bankruptcy filing.
|
| you, especially if you're moving money
| |
| | If you suspect you might be sued (or
|
| off-shore. I've witnessed several
| |
| | might have to go bankrupt), especially
|
| instances of lawyers turning their
| |
| | for something you have no insurance for,
|
| clients in when the IRS or District
| |
| | for example, a business deal gone bad,
|
| Attorney pays them a visit.
| |
| | consult a lawyer. You might still have
|
| Asset Protection for the Rest of Us
| |
| | time to transfer assets to either a
|
| Most of us just have to worry about the
| |
| | relative, a trust or to another
|
| simple mistakes we can make that cause
| |
| | corporation.
|
| personal injuries to another. A car
| |
| | Do not do this on your own. If done
|
| accident or a slip and fall on your
| |
| | incorrectly, you might face tax
|
| property can result in a lawsuit and a
| |
| | consequences and/or criminal charges and
|
| huge claim for damages.
| |
| | still face the loss of your property.
|
| This is where our homeowner's or auto
| |
| | And remember if you transfer your
|
| insurance companies step in. They will
| |
| | property to a relative, it can then be
|
| provide lawyers to defend the claim, hire
| |
| | attacked by that relative's creditors.
|
| experts if necessary and pay damages up
| |
| | This article does not purport to offer
|
| to your policy limits.
| |
| | legal advice. Always seek the advice of a
|
| In spite of the rash of lawsuits plaguing
| |
| | well qualified attorney before taking any
|
| the US, most people with adequate
| |
| | steps to shield your assets.
|
| insurance have little to worry about.
| |
| |
|
