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Asset Protection

Asset protection is the process of identifying sources of potential risks and liabilities and structuring your assets and affairs so as to minimize the risk of loss if those risks and liabilities come about. The techniques, tools and strategies of asset protection are varied. They include: asset protection trusts (both foreign asset protection trusts and domestic asset protection trusts); business entities (limited partnerships, limited liability companies, limited liability limited partnerships and unincorporated business trusts); contracts (pre- and post- nuptial agreements, workplace agreements, arbitration agreements); trusts (qualified personal residence trusts “QPRT”, gun trusts, inheritance trusts, retirement account trusts); and insurance (captive insurance, liability insurance, private placement life insurance). The mentioned techniques and strategies are only a few possibilities.

The posts in the asset protection category explore these techniques and strategies and also discuss issues related to asset protection, such as fraudulent transfer laws, bankruptcy and specific lawsuits. I hope that you find the information useful, but remind you that your situation is unique. Given the wide range of potential liabilities you could be exposed to, the specific assets you desire to protect, and the various categories of protective techniques as well as specific strategies, a proper asset protection plan for you is not going to look like an asset protection plan prepared for any other person. Every personal situation is different, and every asset protection plan should be tailored to address the specific potential liabilities and assets in question. I therefore ask you to keep in mind that this information is intended to be general in nature and should not be acted on or regarded as legal advice applicable to any particular situation. You should consult with an attorney well versed in asset protection and related disciplines (such as estate planning, tax matters, real estate, litigation and bankruptcy).

Rental Property Owner – Sued for Wrongful Death

by Douglas Lineberry on April 20, 2012

On April 17, 2012, the Estate of Billy Ray Shirley III sued Bill’s Towing and Garage for Mr. Shirley’s death.  The complaint is linked below if you care to read it.  It alleges that the property owner allowed its tenant, a motorcycle club, to operate an illegal nightclub on the premises.  Mr. Shirley was unfortunately […]

he use of Nevada corporate entities as an asset protection vehicle has gained ground in the last several years. The selling point of this strategy has been twofold: (1) by using a Nevada entity you somehow import Nevada’s allegedly protective laws into the jurisdiction you are doing business or holding an asset in; and (2) […]

Beware Walking Away from a Devalued Home

by Douglas Lineberry on February 3, 2010

So your home or condo has lost a lot of value? Maybe it’s lost so much value that you just don’t see the point any more and you are considering walking away and turning it over to the bank. Beware that in so doing you may get to keep paying a debt for a home […]

In the previous post I discussed statutory protections that apply to IRAs.  One obvious point is that an account is only protected as long is it actually is an IRA.  This post discusses what can happen when the IRA owner engages in certain conduct known as “prohibited transactions.” What is a prohibited transaction?  It’s a tax rule.  It’s all […]

Debtors have the right to claim certain property as exempt and therefore not available to be used in satisfaction of debts in the bankruptcy proceeding.  Debtors generally have the choice of exemptions set forth in federal statutes (section 522 of the bankruptcy code) or under state law.  For example, you can review the list of […]

This is an introduction to a multi-part post on asset protection for individual retirement accounts (or “IRAs”).  Many people believe that their IRA is an extremely secure asset, held inviolate against claims of creditors and fully protected by bankruptcy laws.  As we will discuss, there is a certain level of asset protection for IRAs in […]

Timing Asset Protection Planning

by Douglas Lineberry on September 30, 2005

A prospective client contacted me recently to ask about asset protection planning. They (the prospective client and spouse) were interested in planning that would protect their personal assets and residence from claims and creditors that might arise because of the spouse’s high risk profession.  When I say “high risk”, I mean people like doctors and […]

Discussion of charging orders and how they apply to limited liability companies and limited partnerships for asset protection purposes.