Baldwin County Asset Protection Attorney
When you have spent a lifetime building and creating wealth, you want to ensure that it passes into the hands of your loved ones. You do not want any threats to your finances in the form of creditors or people who may obtain judgments. There are steps that you can take to protect the wealth you’ve built, and an asset protection attorney at The Law Offices of Brenton C. McWilliams can help provide legal services tailored to your needs.
Protect Your Assets
If you have a judgment against you, creditors can use the assets in your name to pay them off. Although there may be some limits on what they can seize, they might get access to many of your liquid assets. However, when you have established certain asset protections like trusts, you can prevent creditors from reaching your assets because they are not in your name, and outside of your control.. Creditors can only recover from you personally, and the trust is a separate legal entity from your personal assets. Asset protection works best when done in advance. Protecting your assets before trouble arises is essential. Once you are facing legal or financial issues, it may be too late. You will no longer be able to transfer any assets out of your name. If you do, the court may find you have fraudulently moved assets out of your name and disallow the transfer.
Asset protection can help preserve your assets in the face of the following threats:
- Business failures
- Lawsuits against you
- Divorce
- The high cost of long-term care
- Creditors making claims against you
Assets Must Be Moved into an Irrevocable Trust
It is key to move the assets out of your name entirely. You will do so through an irrevocable trust. If the trust is revocable, you will still have some control over the decision-making process pertaining to your assets and therefore, those assets can be accessed in certain situations.
The ability to make decisions is one of the main indicators of ownership. If you still retain any power over your assets, you would typically still be treated as the owner, and they can be accessed in cases of collection from Creditors or for purposes of qualifying for Medicaid. However, if you completely transfer them to an irrevocable trust and delegate all decision-making power, the assets are considered out of your possession. Once you establish the asset protection trust, you cannot undo it, nor can you make any changes.
If you want to protect assets in Alabama, it’s best to contact an estate planning law firm to help you with the proper asset protection legal process.
Use Caution When Establishing an Asset Protection Trust
There is a big “however” at play here. If you transfer your assets at certain periods of time, you may be deemed to have conducted a fraudulent transfer. You should always consult a trusted estate attorney to help you move assets and establish trusts. It is always better to perform these transactions as part of an established trust plan of action for protection, as opposed to giving the appearance that you are intentionally trying to avoid a judgment. Moving assets without prior planning and a trust in place can expose you to even more legal liability.
In addition, the legal documents must be properly created for the trust to be effective. Any mistakes can defeat the purpose of your asset protection strategy. It is always better to consult with an experienced asset protection lawyer prior to the time when you have a specific known threat to your assets. An asset lawyer can work with you on a specific strategy that serves to protect your hard-earned assets.
Contact an Experienced Asset Protection Attorney in Baldwin County
A knowledgeable asset protection attorney at The Law Offices of Brenton C. McWilliams can be one of your most valuable sources of assistance. There are many people and entities who may try to come for your assets at some point, and using an asset protection trust at our law firm will enact the strongest safeguards to preserve them.
If you are worried about the safety of your assets, contact an experienced asset protection attorney at our office to discuss specific strategies for asset protection. We are a full-service law firm specializing in estate planning and administration, elder law, and probate, and we want to help our clients protect what’s rightfully theirs.
Asset Protection FAQs
How is asset protection effective?
Placing assets outside of your ownership and control may prevent creditors from seizing those assets. Putting assets in irrevocable trusts allows you to protect assets from creditors, qualify the elderly for Medicaid, and avoid probate law.
Is asset protection worth the investment?
You will certainly regret not spending the money if somebody else has successfully filed a claim against you and can seize your assets. Asset protection gives you peace of mind, knowing you have protected your family’s financial future. The legal services performed to protect your assets can be extensive, so be sure to contact a qualified asset protection attorney to help.
Do I need asset protection if I have insurance?
Yes. Why not have both? Insurance may only cover so much, and many of the threats to your assets may not come from litigation or other issues covered by insurance.
