Protecting real estate, asset capital, and other assets is a big concern for all high-net-worth individuals, ranging from successful entrepreneurs to physicians to famous artists. After all, as you build your wealth and real estate, you become a rather attractive target for ex-business partners, disgruntled customers, and many more.
Asset protection concerns careful planning to insulate your wealth from creditors and future claims. Asset protection is an essential facet of estate planning for folks who are high net worth and others with a high risk of liability exposure.
Once a claim is raised, navigating through the intricacies and solving the issue is challenging. That is why having the assistance of an asset protection attorney is a must! In this blog, we look at the critical role of asset protection attorneys.
What is asset protection?
Asset protection is a legal tactic to safeguard your assets from lawsuits, creditors, and other legal claims. It concerns structuring the assets so they are difficult for other parties and creditors to access and liquidate. This can concern establishing trusts, establishing offshore accounts, and transferring assets to family members. Asset protection tactics can also be utilized to minimize taxes and maximize asset growth.
Kinds of asset protection
Now that you know what asset protection is, let us take a look at different kinds of asset protection:
● Domestic asset protection trusts
Domestic asset protection trusts are a kind of trust that can be used to safeguard assets from creditors. The trust is established by a trustor who transfers the assets to a trustee. The trustee is responsible for managing the trust’s assets and safeguarding them from creditors.
● Family limited partnerships
These kinds of partnerships among family members can be used to safeguard assets from creditors. The partnership is established by the family members who are the limited partners. These limited partners are not held liable for the partnerships’ debts, so their assets are protected from the creditors.
● Offshore asset protection trusts
These kinds of assets are a little similar to the domestic asset protection trusts, but they are set up in offshore jurisdictions. These trusts are more difficult for creditors to access and can provide more safety for assets.
How an asset protection lawyer can help?
Critical times call for the best measures. Here is how an Asset Protection Law Firm can help you safeguard your assets:
● Granting legal counsel
An asset protection attorney, for instance, can grant you great legal counsel to you and the others who are involved. Trusts are generally complicated instruments, even if you set up a seemingly simple vehicle for your funds. You might be unaware of the following things:
- What type of trust should you create
- Where you should place the trust
- Who should be the trustee
- Who should be a beneficiary of the trust
- What kinds of dividends or distributions should you expect
Additionally, things can be very challenging depending on your trust vehicle and the future jurisdiction of your trust. The right legal counsel will make sure that you have precise answers to the most challenging questions, and they will develop a perfect protective strategy.
● Doing the due diligence
Setting up a good protection trust demands a lot of research. At a bare minimum, you are required to know which jurisdiction you should be setting up the trust in and which bank you should use for the trust itself.
Even when it is operating in an industry parallel to a trust set-up, you are very likely to have no idea where to start. It is where an asset protection attorney can help you. You can rest assured of their research and due diligence to turn up the best answer for your trust needs. Any good trust worth your money and time will take at least a few weeks to set up.
● Drafting the trust paperwork
Your trust is only as strong as the legal terminology utilized in its creation. Therefore, a good asset protection attorney will draft the trust paperwork that is legally airtight.
It will be free from any loopholes, grammatical mistakes, or exploits.
● Managing the trust
Creating an asset protection trust is one thing; managing it perfectly is another venture. Thankfully, in addition to many of their offerings, an Asset Protection Law Firm will also manage your trust on your behalf.
Wrapping Up
Having expert assistance with you is always beneficial before the uncertain happens. If you are looking for the best legal assistance, Law Firm Briest is your best bet!
Their law firm has an excellent worldwide network of law firms, tax advisors, auditors, and other partners who are responsible for the competent implementation of national and international projects. Get in touch with them today and become stress-free of all the legal intricacies and complexities!
