Regardless of Wealth, You Should Expore Guarding Your Assets

By Connor Sullivan

Many people consider asset protection something people do when their net worth exceeds millions of dollars. They may think of Swiss bank accounts and tax havens and assume because they are working or middle class, protection is not for them. This is untrue! 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 they do not live in a state that automatically makes homes exempt from creditors. Cars and other personal property should also be considered and, you need to make sure these assets receive protection. Again, massive wealth does not dictate protection. An engagement ring is a jewelry investment and your inheritance is an asset. Furthermore, you may have investments in savings or stocks and bonds, all of which may be at risk should you be found liable in a court settlement or attacked by creditors. In many instances, a Cincinnati bankruptcy lawyer have asset protection knowledge. Cincinnati bankruptcy lawyers can use their expertise to help you develop a plan. Discuss your options for protection and your risk without it.

While some may be surprised offshore investment options are perfectly legal, others understand it is a great method of protection. There are a number of ways in which to utilize offshore options for protection. While creditors will have little problem discovering your offshore accounts, any ruling in a U.S. court concerning these assets will not hold up. The assets are covered under the laws and regulations of the country in which you have invested them.

The only way creditors can access the money is by traveling to that country, try the case there, and gain similar judgment. It is unlikely this will occur because it is time consuming and expensive.

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 are transferring to a trust family member. Should the relationship go astray, your assets go with it. Your enemy has legal ownership of your assets. There is also a risk of the creditors proving that the transfer was fraudulent.

This means it was done for the sole purpose of avoiding paying your debt. While this is not illegal, the court can simply ignore or undo the transfer leaving you with assets that can be taken. To avoid this accusation, make decisions about your asset protection long before a protection plan is put to use.

About the Author:

Connor Sullivan recently worked with a Cincinnati bankruptcy lawyer while conducting research for a new article. He was very impressed with the client relations conducted by the Cincinnati bankruptcy lawyers while he spent time reviewing their work.

You like it? Share it!