Asset Protection Planning in Thousand Oaks, CA
Why protect your assets?
In today's society, people are constantly suing other parties for a variety of reasons. Whether you believe a lawsuit against you is valid or invalid, your assets are still at risk of being taken away if the opposing party wins. If you created a valid asset protection plan before your legal issues began, your assets may be protected from creditors' claims.
When an asset protection plan is created, assets that used to be nonexempt assets, or assets that are subject to creditors' claims, are repositioned to become exempt assets. Prior to establishing an asset protection plan, you must have short and long term financial and estate planning goals.
If you are interested in creating a plan that may protect your assets, call our firm.
When Asset Protection Is Necessary
Asset protection is necessary if you have any type of assets that can be taken from you in a lawsuit. You can only protect your assets before legal issues arise. If you predict you are going to be sued, state law prevents you from transferring assets out of your name.
Transfers of assets after a suit has been filed against you are known as fraudulent transfers, and the Uniform Fraudulent Transfers Act states that all fraudulent transfers must be reversed. You may believe that a judge will not discover your transfers, but once attorneys take your deposition, you have sworn to tell the truth in the courtroom. If you lie about the transfers, and the court discovers you falsified information, you may be facing jail time, as well as the loss of your assets.
The classic example is that of a piece of rental property, owned individually by a person or persons, in which a tenant is exposed to lead paint and becomes ill. Most, if not all, insurance carriers do not cover losses or liability associated with "exceptions" such as lead paint, mold, or asbestos.
Alternatively, the coverage you carry may not be sufficient to cover the damages suffered by an injured party. If one of these "exceptions" applies or your coverage is not sufficient, then following a successful lawsuit, the injured party becomes your creditor, and may attach your personal assets. However, if the rental property is held within an alternative legal entity, such as those mentioned above, your risk of loss of personal assets will be greatly reduced, if not eliminated entirely.
Ventura County Asset Protection Lawyer
If you already have financial and estate plans, you can easily create an asset protection plan. Some states do not have laws that exempt certain properties from creditor claims, which instantly endangers your property if a lawsuit is brought against you. If you live in a state that does not have property exempt rules, we advise that you create an asset protection plan as soon as possible.
You may contact our firm today at (805) 372-1507 to schedule a free 30-minute no-obligation consultation to find out how our team may help you protect your assets.