Some frequently asked questions about asset
What are the costs of asset protection?
The most inexpensive form of asset protection is simply your firm knowledge
of local and federal bankruptcy and consumer protection laws and
how they can protect you.
A consistent and well thought out insurance program is probably the best
bet for you if you are not in a high risk (of litigation) occupation. A
good blanket personal liability policy providing $1,000,000 of coverage
is rarely more than a few hundred dollars a year. A business liability
policy may be more expensive, depending upon your type of business, but
the added protection would be more than worth it in a business
If you are in business, incorporating will cost you from several hundred
to a few thousand dollars in setting up the legal entity. When you do
incorporate, you can expect that there will be ongoing legal, banking
and accounting costs that can amount to several hundred to several
thousand dollars a year.
The most elaborate (and expensive) form of asset protection family and
offshore trusts. They will provide you with the highest degree of asset
protection, but you can expect to pay several thousand dollars a year to
maintain them. It’s common sense that the larger and more complex the
trusts, the more expensive the price.
What's the most popular technique used for asset protection?
A very common sense approach to asset protection is to choose to avoid
risky behavior and risky environments. That includes avoiding other
people engaging in risky behavior.
While this seems too simple given the elaborate asset protection
techniques available, this approach can protect you in ways that the
other techniques can't. If you avoid dangerous activities, situations
and people, you will have very little need for elaborate schemes. If you
must engage in these activities, plan to budget a substantial amount of
your resources toward profession asset protection.
How does a limited liability company provide me with asset
It create a legal entity to buffer you personally from liability of the
LLC created. You should be aware that an LLC will only insulate you from
general business liability based claims against the LLC. If there are
claims against you personally, you won’t have protection just because of
the existence of the LLC.
Can I set up an asset protection structure after I already run into
If you’re already in danger of litigation because of your actions or the
actions of others that you may be liable for, it’s probably too late to
set up an asset protection measures that will pan out in court.
Transferring assets to a friend or family member will most likely be
seen as a fraudulent conveyance by the courts should litigation ensue.
In any case, if you are a target of creditor's collection action or a
lawsuit, you should seek competent counsel for advice in defending your
Do I need to hire an attorney to set my asset protection techniques?
As mentioned above there are several techniques that are common sense
approaches to avoiding trouble. If you have a competent insurance
broker, you will not need an attorney to purchase the appropriate
There are numerous online and storefront resources available to assist
you in setting up a corporation or LLC. You might want to seek counsel
for a general overview of what you are trying to accomplish.
If your circumstances require that you set up a specific trust for your
assets, then it will be unlikely that you will correctly assemble the
documentation without the assistance of competent legal counsel. You may
actually be doing yourself more harm than good should incorrectly set up
a legal entity that will not stand the scrutiny of the courts in the
jurisdiction of the trust.
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relating to asset protection. Whether you a real
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