You have built up a lifetime’s worth of assets, savings, and wealth, and are finally ready to retire. With smart financial decision-making and years of constant saving, you have even accumulated a healthy amount of money to leave as an inheritance to your children and grandchildren. But did you know that it can all disappear in a heartbeat if you should be sued?
Whether it be the result of financial predators who use the legal system to deprive you of your assets, a legal issue involving your business, or a sudden accident for which you are held liable, a lawsuit can be devastating for your financial situation. In fact, if someone wins a monetary judgment against you, your family could become bankrupt trying to pay it off. This is why asset protection techniques are so important.
What Is Asset Protection?
Simply put, asset protection is an area of law which utilizes various legal methods to shield your assets from being seized by creditors in the event that you should be sued. With a proper asset protection plan, creditors will be largely unable to force you to liquidate your assets or place a lien on an asset when they win a judgement against you.
Common asset protection techniques include:
- Maximizing contributions to IRAs
- Moving funds to an irrevocable trust
- Retitling assets
- Using limited liability companies
- Using family limited partnerships
Asset protection can be beneficial for individuals of all tax brackets, not just the super-wealthy. With that being said, an asset protection plan only works if you act prior to being sued. If you are already facing legal action or fear impeding legal action, the courts will likely reverse any transfers of assets you have recently made which prevent creditors from reaching them. For this reason, it is important you retain the services of a skilled attorney and put a plan in place ahead of time before it is too late.
Protect Your Future with Davidov Law Group
Whether you work in a high-risk industry with a high likelihood of being sued or simply wish to make certain your assets remain intact for your heirs, our Nassau County asset protection lawyers at Davidov Law Group can help. Having provided premier-quality estate planning advocacy for clients throughout New York for more than 25 years, our team of top-rated advocates can bring the sound legal counsel and strategies you need to guard your and your family’s interests.
Call or get in touch with us online today to discuss your situation.