Protecting Your Assets May be Your Most Important Decision
A lot of people consider asset protection an action for the rich. They consider Swiss bank accounts and tax havens and assume because they are working or middle class, protection is unnecessary. Not true! If you own assets, it is important to have them protected. Homeowners need to make an effort to protect the equity in their home, especially if their state does not provide home exemptions. If you own a car or have invested in items like artwork or gems and jewelry, you need to make sure these assets receive protection. Again, massive wealth does not dictate protection. An engagement ring requires protection and having inherited jewelry or artwork means you now own these assets. Furthermore, savings and investments need protection, all of which may be at risk should you be found liable in in a settlement. In many instances, a Cincinnati bankruptcy lawyer can help you establish strong protection plan. Cincinnati bankruptcy lawyers can use their expertise to help you develop a plan. Speak with one about you options for protection and your risk should you forego protection.
While some may be surprised offshore investment options are perfectly legal, others understand it is a great method of protection. There are numerous ways in which to utilize offshore guards. While creditors can find offshore accounts, U.S. court rulings will not hold up. The investments are covered under the laws and regulations of the host country. The only way creditors can access the money is by traveling to that country, had their case tried in that country’s court system, and gain similar judgment. It is unlikely a creditor will invest the time or money to accomplish this.
Your other option, often known as the poor man’s asset protection, is to transfer your assets to someone else. This is risky, even when you trust the transferee. Should the relationship go astray, your assets go with it. Your enemy has legal ownership of your assets. Creditors can also prove that it was a fraudulent transfer. This means the court sees you transferred these assets for the sole purpose of avoiding debt payments. While fraudulent transfer is legal, the court can simply ignore or undo the transfer and you are back where you began. To avoid being accused of the action of fraudulent transer, prepare your protection plan well in advance of needing it.

Posted February 24, 2010
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