I was recently speaking with a client regarding a real estate transaction when the conversation suddenly turned to asset protection strategies. During our conversation, the client wanted to know when they should start protecting their assets.
The answer? The sooner the better.
There are many asset protection strategies that have time constraints on whether your assets will be protected. For instance, in certain cases waiting even 14 months can mean the difference between your assets being protected from a future unknown creditor and not being protected at all.
A proper asset protection strategy should always be reviewed with a competent and knowledgeable attorney on this subject. However, every asset protection strategy involves education and discussion of the following subjects:
• Use of Exempt Assets and Exemption Planning
• Equity Stripping Strategies
• Domestic Asset Protection Trusts
• International and Offshore Asset Protection Trusts
• Domestic Business Entities
• International Business Entities
If you are considering implementing an asset protection strategy, the first step is to focus on education. Make sure you educate yourself on the various strategies which might be available to you. Speak with an attorney who can discuss the various strategies and options. This is always an important aspect, as handling an asset protection strategy incorrectly — even slightly — could subject you to civil liability, IRS liability, or even criminal liability.
Always be ready to act and implement the appropriate strategy when you are comfortable. As an example, the Ohio Legacy Trust — commonly referred to as a Domestic Asset Protection Trust — can protect your assets from future unknown creditors. However, in order to receive the fullest protection under the Ohio Legacy Trust Act statute, you must establish and fund your trust for at least 18 months.
A word of caution. You should not engage in asset protection to defraud a known creditor. This is a serious legal violation and can subject you to civil and even criminal liability. The type of asset protection you should engage in, however, are the strategies which will protect your hard-earned wealth from future unknown creditors.
The asset protection attorneys at Aronoff, Rosen & Hunt, LPA are here to help you! Please contact our office at (513) 241-0400 or use our contact form to schedule a time to discuss this topic with an attorney. Our Asset Protection team looks forward to speaking with you!