Though not everyone can afford sophisticated asset protection planning, anyone can follow these simple asset protection tips and avoid many common pitfalls, and many not so common.
Never mix liability generating assets and be sure to assign a unique entity for each liability generating asset. As an example, a bakery should not be owned by the same entity which owns a bookstore.
Say No to General Partnerships
As a rule of thumb, avoid handshake agreements and general partnerships, as these tend to cause more trouble than theyre worth. Many people are unaware that a general partner can commit to any type of legally binding contract, and such commitments make all general partners jointly and individually liable.
To take your assets, they first have to be found, so whenever possible, title assets indirectly and not under your personal name. Its best not to flaunt your assets and live a moderate lifestyle. Having said this, a good asset protection plan does not rely on obfuscation and should work solidly even if every last asset is in plain sight.
State by State
State laws can vary widely as far as what a creditor can take or not. If you find a good asset protection lawyer, you may be able to hold onto assets even when confronted with a serious creditor attack.
There is no country worldwide that recognizes U.S. based judgments automatically, and no country in the world recognizes tax judgments from the U.S.
Asset Protection Lawyers
This one may sound obvious, but I cant tell you how many people Ive encountered who wish theyd secured a knowledgeable asset protection attorney when they find the small asset concerns they had became a screeching nightmare! When in doubt, get good advice. Get a lawyer who specializes in asset protection to look over your current situation if you are worried, or even if youre not. After all, small problems cost much less to ameliorate than catastrophes. Asset protection planning is best carried out with a qualified lawyer, or at least consult an asset protection attorney before making any big moves.
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