Fort Lauderdale Asset Protection Attorney
An overlooked part of estate planning is asset protection. The goal of asset protection is to prevent creditors from gaining access to your hard-earned assets, including real estate, cash, or investments. There are many legal techniques for placing assets beyond the reach of creditors. However, not all techniques are legal, so you will benefit from an experienced legal advisor when you start the process. Contact a Fort Lauderdale asset protection attorney at Ronald Cutler, P.A. Below, we provide an overview of asset protection, but contact us if you have any questions.
Who Needs Asset Protection?
Virtually anyone can benefit from asset protection. Imagine that someone sues you. Maybe you struck them in a motor vehicle accident. Or they were injured by your small business. If they win the lawsuit, they get a judgment against you.
In Florida, this judgment creditor might:
- Garnish your wages
- Put a lien on your real estate
- Seize and sell personal property
- Levy bank accounts
There are steps you can take to protect these assets from any creditor. For example, we have experience helping clients purchase umbrella insurance. This type of policy often has a high policy limit, which can pay compensation to someone who sues you for personal injury. Consequently, they have no desire to sue you or try to seize personal assets.
Another technique is to transfer ownership of assets to a limited liability company (LLC) or a corporation. For example, you might have an LLC own a rental property. If someone is injured on the property, they can sue the LLC—but you are protected as the owner. A judgment creditor can’t reach through the LLC and seize your personal assets. They are limited to the assets owned by the LLC.
Other asset protection techniques involve putting assets into a trust. Once you transfer them, the trust owns the asset—not you. However, you can name yourself or family members as beneficiaries who will receive the benefit of the asset. A trust is a complicated legal vehicle to create. There are many considerations, including whether you will be taxed or not on the trust assets. We can also choose an appropriate trustee to manage the trust.
These are some of the most sensible, widely used asset protection techniques. We might also discuss whether to move assets offshore, which is not illegal. The technique used will depend on the particular risks you face, as well as the assets you own. For example, Florida has a generous homestead exemption, which can protect your home. Also, many retirement accounts are beyond the reach of a creditor.
Speak with a Fort Lauderdale Asset Protection Attorney
Ronald Cutler, P.A. leverages detailed knowledge of tax law, business law, and personal liability to benefit its clients. If you are searching for asset protection solutions, please call our firm. A Fort Lauderdale asset protection attorney can meet to go over your assets and your objectives. Then we will find the right asset protection methods that work for you. Give us a call today.