Publications
PROTECTING YOUR ASSETS
Over 16 million lawsuits are filed in state courts every year. That's roughly one lawsuit every 2 seconds -- 24 hours a day, seven days a week. This "litigation lottery" puts many, including those in traditionally low-risk professions, at risk. Americans are also getting divorced and filing bankruptcy at an alarming rate.
Asset protection planning allows you to employ techniques to prevent potential future "creditors and predators" from taking your assets, or the assets you pass down to other family members as inheritance. It involves a process of organizing assets and affairs in advance so as to safeguard them from loss or dissipation. Your wealth may be more or less vulnerable to the risk of loss depending on the nature of the property and the manner in which it is held.
Thus, asset protection planning typically involves "recharacterizing" the nature of the property and "reorganizing" the manner in it is held. The goal: Make your acquired wealth less vulnerable to threats from potential future "creditors and predators."
Because changing title to your assets has estate planning, tax and possible business implications, you should discuss asset protection planning with an attorney sensitive and knowledgeable in these other practice areas. Another reason to consider the total picture: changing title to assets could unknowingly implicate fraudulent conveyance laws with respect to certain creditors. Asset protection planning is not a “one-size-fits-all” approach, and careful orchestration of your plan requires an understanding of your unique situation.
Please contact us for further information and help in planning your best course of action.
Powell Trachtman Logan Carrle & Lombardo, P.C.
610-354-9700
www.powelltrachtman.com
