We Know: All About Asset Protection Services
What Is Asset Protection?
Asset protection is the use of legal methods to protect your assets from future creditor claims, including federal, state, and local tax. Careful planning can keep more of your assets in your hands.
Is Asset Protection Legal?
Asset protection is completely legal if done properly. The most common forms come in estate planning, when people with assets arrange financial affairs so that inheritance tax makes minimal or no impact on the estate and probate goes smoothly. All asset transfers must be completed before you have any claims made on the assets; otherwise, your transfer is fraudulent, which will not only invalidate the transfer but may make you liable for criminal prosecution. Be very careful about your timing.
Laws controlling asset protection vary from country to country. This article is based around U.S. law, but if you live somewhere else, you may find very different rules governing your assets. Make sure you educate yourself on your special circumstances. Even in the United States, asset protection laws vary somewhat from state to state, so be certain you get the correct information for your part of the country.
You should also be aware that with the recent revision of bankruptcy law in the 2005 Bankruptcy Reform Act, many laws have changed and are untested in a court of law. Several asset protection techniques are weakened or compromised as a result.
How Can I Use Asset Protection?
How Will My Assets Be Protected?