People work hard for their entire lives to accumulate the assets that they have. This can include real estate, motor vehicles, stocks, bonds, bank accounts, retirement plans, pensions, and more. It is because of this that most people want to protect these assets so that they cannot be threatened or taken away by creditors, lawsuits, or bankruptcies. This can be done with an asset protection trust that allows individuals to protect their assets from creditors. It also provides them with certain tax benefits. When facing this situation, it is important to retain the services of an experienced asset protection attorney to ensure that your assets are legally safe.
What is an Asset Protection Trust?
There are many different types of trusts that a person can create during their life. The various kinds of trusts keep assets safe in different ways. An asset protection trust holds a person’s assets to keep them safe from creditors. When this is created, the trust is given ownership of the protected assets. It is important to know that the process of transferring these assets into a trust must follow the correct legal channels in order for them to truly be safe. A skilled attorney can guide individuals through this process.
Types of Protection Plans
There are different types of asset protection strategies that can be used for safekeeping. This can include:
- Domestic Asset Protection Trust
- Offshore Trusts
- Other irrevocable trusts
- Third-Party Spend Thrift Trusts
- Homestead and other Statutory Exemptions
- Special Needs Trusts
- Medicaid planning
When the right protection plan is chosen and created correctly, the assets held within the trust should be safe. This ensured that creditors are unable to reach and take the individual’s assets from them. Often times, it deters most creditors from pursuing action and leads them to settle.
Do I Need Asset Protection?
Many people believe asset protection is only for the wealthy. However, it is common amongst people of any financial situation to secure their most precious belongings. While certain individuals can face a higher risk of going through lawsuits, anyone can benefit from basic asset protection. Doing so allows an individual to have a peace of mind that the assets they worked so hard for are safe from any potential future threats they may face. It also ensures their wishes are taken into consideration and their beneficiaries are also protected.
Contact our Firm
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.