Asset Protection: Guarding What's Yours
In today's litigious world, one ill-fated court decision can jeopardize everything you've worked so hard to build for yourself, your family and your community-even if you've done nothing wrong. If you're a business owner, the head of a household, a high net worth individual or an athlete or entertainer, you're particularly vulnerable - and especially in need of solid asset protection planning.
At The McLawhorn Firm, our techniques protect your hard-earned gains from lawsuit or the claims of future creditors. The vehicles are myriad and varied. However, they all operate under a common principle: to keep you in control of your assets while minimizing the risk entailed with legal ownership.
We can help you move valuable assets into a family limited partnership (FLP). If you're an entrepreneur, we can help you structure your business as a limited liability company (LLC) to take advantage of the asset protection enjoyed by corporations without corporate taxes and obligations, such as minutes. We can also work with you to incorporate protective language into your partnership or operating agreements or set up multiple entities for multiple layers of protection.
The McLawhorn Firm will help you figure out the best plan for you and your situation.
Asset Protection Trusts
Often used for tax or financial planning reasons, trust tools also offer powerful asset protection capabilities. Common examples include:
- A spendthrift or credit shelter trust: Provide income or principal to a beneficiary-a child, a spouse, an elderly parent-without yielding control. The terms of transfer are set by the trust instrument, which you establish.
- A qualified personal residence trust (QPRT): FLPs and LLCs don't protect your home's equity or tax benefits. For this, you need a QPRT.
- Foreign trusts and foreign LLCs: These enable you to move funds out of the jurisdiction of the U.S. court system, dissuading potential plaintiffs from even thinking of filing a case. Some limitations and complexities may apply; however, those in high-risk medical specialties or those unable to get adequate insurance can benefit from these vehicles.
The Time to Plan Is Now
Many people hold off on asset protection planning until they face a direct threat of litigation. Why this is a bad idea: Such last-minute measures can be viewed as anticipatory and may be declared void when the case goes to court.
In the words of John Fitzgerald Kennedy, "The time to repair the roof is when the sun is shining." And, in the words of The McLawhorn Firm, the time to establish an asset protection plan is now, well before it's needed. Call us today to get started with a consultation. 202-449-9697
