Protecting Your Assets May be Your Most Important Decision
Many 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 not for them. This is untrue! If you own assets, it is important to protect them regardless of their specific worth. 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. If you own a car or have invested in items like artwork or gems and jewelry, you need to make sure these assets are safe. Again, this is not just in regard to massive wealth. 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 have asset protection knowledge. Cincinnati bankruptcy lawyers often have knowledge about how creditors behave and what will be at risk should you not protect your assets. Discuss your options for protection and your risk should you forego protection.
While some may be surprised offshore investment options are perfectly legal, others understand this is one of the best ways in which to protect your assets. There are a number of 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 country in which you have invested them.
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 transferring your assets to another person. This can be a risky move, even when you trust the transferee. Should the relationship go astray, you are out of luck. Your enemy has legal ownership of your assets. Creditors may also prove that the transfer was fraudulent.
This means it was done for the sole purpose of avoiding debt payments. While this is not illegal, the court can simply ignore or undo the transfer leaving you with assets that can be taken. To avoid being accused of the action of fraudulent transer, prepare your protection plan well in advance of needing it.
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.
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