…Proper Asset Protection is most
appropriately done when the client knows that he or she has no outstanding
claims, i.e., the skies are perfectly clear of creditors. Asset Protection is
all about avoiding fraudulent transfers, not designing and implementing them.
Plans are made with the intent
to put them into action in the future (if necessary). Asset protection planning
is no different, although many people attempt this type of planning entirely
A recent Forbes article is a good reminder that asset protection is like
fire insurance – the best time to take out a policy (i.e., make proper asset
protection plans) is before the fire
department arrives. The article is appropriately titled “Existence Of Claim Renders Some Clients
Seeking Asset Protection Effectively Dead On Arrival.”
Asset protection is about making
sure matters are structured now to protect them if a legal claim may threaten
them later. If there already is a claim, then any act to protect assets becomes
suspect and reversible (or punishable).
If you have reason to protect
your assets due to some future risk you can envision, then now is the time to plan. Courts do not look favorably on last
minute plays to protect assets.
Consult with your estate
planning attorney on all of your asset protection needs. Planning now will
ensure peace of mind for the future.
Reference: Forbes (January
31, 2013) “Existence Of Claim Renders Some Clients Seeking
Asset Protection Effectively Dead On Arrival”