In the past, planning to protect assets from the claims of creditors was reserved for high-risk professionals such as doctors and architects, and asset protection involved transferring assets to a spouse. Now, because of dramatic increases in litigation and the risk of catastrophic claims of creditors, there is a greater need for asset protection planning that can protect your assets and reduce your risk.
Asset protection planning typically involves creating entities to which assets are transferred in order to keep those assets protected from your creditors.
How do I know if I need an asset protection plan?
If you have assets that can be taken away by creditors or by people who have successfully sued you, you could benefit from asset protection planning. There are professions that are more high risk than others, such as doctors or professional drivers. If a doctor is successfully sued for malpractice or a professional driver is successfully sued for injuries sustained in an accident he or she caused, they could lose everything. Asset protection planning allows a person to hold assets in a way that makes it much more difficult for someone else to take them away.