Your Guide to Debt and BankruptcyYour Guide to Debt and Bankruptcy

About Me

Your Guide to Debt and Bankruptcy

About 10 years ago, I secured my dream job with one of the largest corporations in the country. The job came with a substantial increase in pay and I soon looked for a large house for my family. After living the life I dreamed of, I was let go from my current position. I had a large amount of savings, but the economy took a turn for the worse and savings were quickly drained. I soon became stressed about finances. I could not pay the mortgage and bill collectors started to call my house. I refused to be defeated though, so I met with a bankruptcy attorney instead. I live a much simpler life now with my family, and I want you to know that financial stress does not have to affect you for years. Read my blog to learn about bankruptcy, debt laws, and how to hire an attorney.

What Strategies Can An Asset Protection Attorney Use For An Average Citizen?

When most people hear the term "asset protection," they tend to think it's only for the wealthy. But even average citizens need to be thinking about protecting their wealth. And here's just one reason: Did you know that the average American pays nearly 24% of their income in taxes? And with the recent changes in tax laws, it's more important than ever to make sure you're doing everything you can to keep as much of your hard-earned cash as possible. But where do you even begin? Here are strategies an asset protection attorney can use to help you protect your wealth:

1. Creating Irrevocable Trusts

An asset protection lawyer can use an irrevocable trust as part of a comprehensive asset protection plan. These trusts are created with specific terms and conditions that cannot be changed once they have been established and funded, making them very secure vehicles for protecting wealth from creditors or legal judgments against the trust's grantor or their heirs.

2. Offshore Planning

Offshore planning involves transferring certain assets to foreign jurisdictions with favorable tax laws or creditor protections. Even average citizens can benefit from having some portion of their wealth held offshore if there is a legitimate reason to do so. This could be done by diversifying investment risk across multiple countries or taking advantage of international tax agreements between nations that might offer more favorable treatment than what is provided domestically under US law alone.

3. Establishing Asset-Holding Entities

An asset protection attorney can establish holding entities like family limited partnerships (FLPs) or limited liability companies (LLCs) to hold investments such as real estate, stocks, bonds, mutual funds, etc. This can shield these types of investments from creditors while still allowing them to benefit from appreciation over time without being directly exposed to any potential risks associated with such investments should something go wrong down the road. This type of setup makes it easier for individuals who want complete control over their financial affairs without exposing themselves directly to unnecessary risks associated with those decisions later on down the line.

4. Asset Segregation

Separating assets into different categories, such as personal versus business assets, can help limit exposure to potential creditors or lawsuits. For instance, keeping money in separate accounts based on its purposes, such as retirement savings, emergency funds, and investments, can create additional layers of security against financial loss due to judgments or settlements against you personally or your business entities.

It's important to remember that protecting your wealth is an ongoing process, not something you do once and then forget about. It's not about being rich or famous; it's about protecting your hard-earned money from falling into the wrong hands—the hands of the government, creditors, or malicious parties. Consult an asset protection attorney today on practical ways to safeguard your assets for you and your dependents.