Asset Protection Attorneys and Risk Mitigation
Individuals and businesses with considerable wealth are too often the targets of financial predators who attempt to use the legal system to deprive others of their assets. Proactive planning can prepare you for unexpected legal claims, shielding your assets from potential creditors. Asset protection planning is a crucial step in the estate planning process regardless of where you are in your life. Proper asset protection strategies can ensure you and your family have access to necessary financial support should a crisis arise. Engaging in asset protection can place a barrier between you and your creditors if you are the unexpected target of a lawsuit, can stop unwarranted asset loss during a divorce, or can ensure there is a plan in place in the event of incapacitation. The longevity and impact of your legacy can be safeguarded through careful planning with Long Island asset protection attorneys.
Asset Protection to Preserve Your Legacy
The ultimate goal of asset protection techniques is to make it more difficult for others to find and/or take your assets. Using business entities, trusts, and partnerships can protect your assets from a lawsuit, and given today’s litigious society, this is extremely important. Whether you are a professional like a doctor or lawyer, or an owner of a small business or large company, Davidov Law Group will help you create a plan that meets your financial goals and needs.
We will incorporate asset protection into your estate plan while advising you on wealth management and investment strategies. We provide holistic protection and reassurance as we educate you on the various approaches used in asset protection. While working hard to understand your concerns and goals, Davidov Law Group ultimately provides you with peace of mind, knowing your wealth is secure.
The Long Island asset protection attorneys at Davidov Law Group have a deep understanding of New York asset protection laws. Our knowledge and experience allow you to safeguard your assets and properties, protecting you from lawsuits, creditors, and more. Asset protection is a complex subject—and not one all estate planning attorneys fully understand. You need an asset protection attorney who is ready and able to create a plan that will help you ensure your properties and assets are safe, based on your short and long-term goals.
Asset Protection Strategies Customized to Your Goals
Coming to grips with our own mortality or the prospect of declining health or incapacitation can be daunting—yet necessary. Whether you are protecting your own private wealth and assets, or your business, failing to engage in asset protection can have disastrous effects. As an example, consider the rising tide of businesses that file lawsuits simply to stifle competition.
There has been an explosion of frivolous patent lawsuits that do nothing more than punishing innovators, driving up consumer costs—yet one of these lawsuits could potentially devastate your business. Properly done, asset protection plans are moral, legal, and ethical ways your assets can be protected by implementing perfectly lawful mechanisms. Davidov Law Group can help you protect your personal and business assets in the following ways.
- LLCs—One way to protect your personal wealth and assets is to form an LLC—a business entity that is legally separate from you, the owner. This separation is known as limited liability protection. If for some reason, your LLC is unable to pay its debts, creditors cannot attach your personal assets, including cars, homes, and bank accounts. The only risk is the money invested in the LLC business. Although owners are still liable for personally guaranteed debts, a lawsuit based on their personal wrongdoing, or (possibly) unpaid payroll taxes, most personal assets are shielded. Even in these situations, there are strategies such as having a good liability insurance policy that will protect you and your business in the event of a lawsuit. You can also place assets into a trust that is protected from creditors and further structure your assets in a way that will further shield you from liability for business obligations.
- Buy-Sell Agreements—A Buy-Sell Agreement is a legally binding contract stipulating how one partner’s share of a business will be reassigned in the event of death, incapacitation, or if a partner leaves the business. Typically, a Buy-Sell Agreement will stipulate that the remaining partners or partnership will have the first right to buy that partner’s shares. A Buy-Sell Agreement dictates that this Agreement—rather than the marketplace—will dictate the sale price paid for a partner’s interest in the business. The Buy-Sell Agreement could also include a “formula” that determines the value of the business interests or may direct a named individual or entity who is responsible for determining the sale price at the time of the sale. A Buy-Sell Agreement could also include restrictions on transfer, usually to prevent dilution of ownership or unintended co-owners. Terms of the Buy-Sell Agreement can be carefully crafted by Long Island Asset Protection Attorneys from Davidov Law Group to ensure the Agreement best meets the needs of the business partners.
- Family LPs—A family limited partnership (FLP) transfers ownership of properties or assets to family members, while still allowing the owner to maintain control. Family LPs can save on estate and gift taxes, shift income from parents’ higher tax brackets to children’s lower tax brackets and provide asset protection against creditors. Parents who own a business that provides significant cash flow could transfer the business into an FLP. The agreement might be set up so that the parents own 40 percent of assets and income, and the children own 60 percent. Payments of income are discretionary, with parents as general partners. This type of agreement would prevent creditors from going after the individual assets of the parents or the children outside the FLP. The parents would continue to manage the property and control the money flow. This is just one example of the many variations possible with an FLP.
- Trusts—A living trust is an estate planning tool that allows you to transfer ownership of your assets to the trust, while you are still alive. You remain in total control of these assets until your death or incapacitation, then the assets transfer to your chosen beneficiaries without having to go through the probate process. Asset protection trusts allow you to legally and efficiently transfer a portion of your assets into a trust, taking those assets out of reach to most creditors. You can receive occasional distributions from the trusts, and even shield assets for your children. Most asset protection trusts are irrevocable, allow distributions at the trustee’s discretion, have a spendthrift clause, and the trust’s documents and administration, along with some or all of the assets, must be located in the trust’s state. So long as your trust is prepared by an experienced Long Island asset protection attorney, regulatory requirements will be satisfied, and your assets will be protected.
Along with the above strategies to protect your wealth and assets, there are many more ways Long Island asset protection attorneys can help you ensure there are no unintended consequences to asset protection.
How to Select the Best Asset Protection Attorneys for Your Unique Circumstances
When you begin thinking about protecting your assets and wealth, it is extremely important that you choose the very best Long Island asset protection attorneys available. At Davidov Law Group, we implement a holistic view of planning to ensure its effectiveness, while building strong client relationships and understanding all your goals prior to making recommendations.
We have a depth of experience in financial matters that few other law firms have. With an in-house Certified Financial Planner/attorney who helps our clients plan, we have the legal and financial expertise to ensure your planning does exactly what it needs to do. Michael and Ilana Davidov literally wrote the book on this topic, “Keeping it in Your Family—Protecting Your Family and Leaving a Lasting Legacy.”
How Davidov Law Group Will Protect Your Family and Preserve Your Legacy
Davidov Law Group is a family-owned firm that strives to help other families plan for their future. Our offices are on Long Island, serving Nassau County, NY and Queens County. Ilana and Michael Davidov are spouses who are immigrants and children of immigrants. We feel we are living proof of the American Dream, coming from parents who sacrificed to provide a better future for us.
With more than 21 years of client service and 2,500 families protected by our firm, we are strong believers in creating a unique estate plan for each client. There is no one-size-fits-all when it comes to estate planning—we care about your goals and your concerns. Our mission is to empower you to make smart choices about your future. We will explain your options clearly, explore various strategies, and answer any questions you may have about asset protection and estate planning. Contact Davidov Law Group today to experience our meticulous attention to detail.