When people with significant wealth start putting together their estate plans, a topic that often arises is how to protect assets. There are several options in Florida that can shield property from entities such as creditors. At The Warnock Law Group, we are adept at putting together plans that give people the best possible protection.
The intention of asset protection is to keep property safe from the possibility of a lawsuit, which can result from an act of negligence or simply unpaid bills. The types of assets that are typically available to creditors are nonexempt assets, which include the following:
- Stocks, bonds and investment accounts
- Bank accounts
- A second home or second vehicle
- Valuable collections
There are a few common ways of transferring assets so they are not subject to lawsuits. For example, many people transfer property into an irrevocable trust. As Forbes magazine points out, the traditional revocable trust does not provide assets enough protection.
There are some alternatives to setting up trusts, such as gifting the property to an heir. The Internal Revenue Service has allowed individuals to gift $14,000 per person to an unlimited amount of people every year.
Lastly, some people choose to set up a limited liability company or family limited partnerships. These situations can be extremely complex and should always be done under professional guidance.
Protecting your assets is key to ensuring your legacy will continue without fear of an attack from a creditor or other party. For more information on this topic, please visit our page on preserving assets through estate planning.