What Is Asset Protection Planning?
Asset Protection Planning is a broad term used to describe the method by which an individual can preserve his or her wealth from claims by creditors. The approach taken in arranging an asset protection plan will depend on many factors.
How Do We Help Clients?
At The Pollock Firm LLC, we customize a strategy for you based upon your residence, desired mobility, the amount of access you need to your money, investment objectives, and your present circumstances. We take the time to learn about our clients as family dynamics play an important role in any estate planning strategy.
We counsel clients in ways to place assets beyond the reach of unknown future creditors to the extent legally and ethically possible. Legitimate asset protection planning does NOT involve hiding assets, using secret agreements, or making fraudulent transfers. Rather, asset protection planning combines sophisticated and legitimate business planning and estate planning techniques which result in wealth preservation. Moreover, good planning isn’t always about eliminating risk. Good planning is about minimizing risk and maximizing leverage.
The most common planning tactic includes the attorney forming a limited liability company or an asset protection trust. Often, the best planning is to fully utilize options that the government clearly allows. For example, funding a 401(k) or similar retirement account is a great way to protect your wealth and minimize taxes. We also offer more sophisticated planning for those who need it. We can help create domestic asset protection trusts and offshore trusts.
Most techniques involve gifting away all or a portion of your assets. Additionally, many strategies involve putting someone else in charge of your money. If you are uncomfortable letting anyone else manage your funds, asset protection planning is probably not for you.
Distinction Between Protecting Yourself From Creditors vs. Protecting Your Family From Creditors
It should be pointed out that when using the phrase ‘Asset Protection Planning’, most people are referring to protecting their own assets from creditors. This is much harder to do and more expensive than sending money to an asset protection trust for a spouse or a child. Setting up a trust for a third party that has asset protection features is very common and well respected throughout the United States. Mosts trusts created for a surviving spouse or children under a Will can provide asset protection. Additionally, a lifelong trust for a child can provide protection for your descendants in the event of a divorce.
Fraudulent Transfers are not Legitimate Planning
We WILL NOT help you to transfer assets subject to a claim from an existing creditor, so please do not ask.
Kevin A. Pollock, Esq. has extensive experience helping clients protect their wealth. For more information, please visit my blog: Kevin A. Pollock BLAWG
