You may have heard the term “asset protection” before but aren’t quite sure what it means. Asset protection is the process of safeguarding your assets from creditors and lawsuits. It usually involves setting up legal structures, such as trusts, to hold your assets. There are many different asset protection strategies, and which one is right for you depends on your specific situation. If you’re considering asset protection, the Los Angeles asset protection lawyers at Martin Family Law Group are ready to assist you. Call (310) 694-9533 to schedule a free consultation.
What Are the Benefits of Asset Protection?
The primary benefit of asset protection is that it can help you keep your assets if you’re sued. If you don’t have any asset protection in place and you’re sued, the court can order your assets to be liquidated to pay the judgment. This can include your bank accounts, investments, real estate, and even personal belongings like jewelry and art.
However, if you have an asset protection plan in place, your assets may be safeguarded from creditors. This means that even if you lose a lawsuit, your creditors may not be able to access your assets to collect on the judgment.
Another benefit of asset protection is that it can help you reduce or eliminate estate taxes. If you set up a trust, for example, you may be able to minimize the amount of taxes your heirs have to pay when they inherit your assets. This can help them keep more of what you’ve worked so hard to earn.
How to Safeguard Your Assets
When it comes to asset protection, there are a number of measures you can take to safeguard your assets. Some of the most common include the following:
Create an LLC
One way to protect your assets is to create an LLC, or limited liability company. An LLC is a business structure that limits your personal liability for debts and actions taken by the business. This means that if your LLC is sued, only the assets belonging to the LLC—not your personal assets—are at risk.
Create a Trust
When you create a trust, you transfer ownership of your assets to the trustee. The trustee then manages the assets for the benefit of the beneficiary. The terms of the trust determine how the trustee can manage the assets and how the beneficiary can use them. When you place your assets in a trust, they are no longer considered part of your estate, which means they cannot be seized by creditors if you default on your debts. Our Los Angeles trust attorneys can help you navigate setting up a trust.
Another method of asset protection is to obtain insurance. Insurance can help protect you from liabilities arising from car accidents, injuries sustained on your property, or even defamation claims. There are many different types of insurance policies available, so it’s important to consult with an experienced insurance agent to find the right policy for you and your business.
Make a Will
A will is another important document to have in place when it comes to protecting your assets. A will lets you specify exactly who you want your belongings to go to and gives you peace of mind knowing that your wishes will be carried out. If you don’t have a will, state laws will determine who gets your assets, which may not be who you would have chosen.
Contribute to Retirement
Last but not least, another way to protect your assets is to contribute to retirement accounts such as a 401(k) or IRA. Retirement accounts are typically exempt from creditors’ claims, which means that your retirement savings will be safe even if you’re sued or declare bankruptcy.
Hire The Martin Family Law Group For Your Asset Protection Needs
If you own any assets—a home, a car, investments, property, or even just a savings account—then you need to think about asset protection. At The Martin Family Law Group, we have extensive experience helping our clients with asset protection. We will work with you to understand your goals and create a personalized plan that meets your specific needs. Our experienced attorney will help you every step of the way, from creating the initial plan to implementing it and making sure that it is effective. Contact us today to schedule a free consultation.