Asset Protection

Michigan Estate Planning Lawyers Dedicated to Protecting Our Clients’ Economic Interests

An asset protection plan is a system of managing your wealth in manner that protects your assets from creditor claims, limiting creditor access to valuable assets and properties in a legal fashion. Creating an asset protection plan is imperative to protect your family’s future.

Although asset protection planning might seem like something only for the extremely wealthy, the reality is that anyone can be sued. Lawsuits can arise out of car accidents, credit card debt, foreclosures, unhappy customers, etc.; the reasons one can be sued are beyond counting. Losing a legal dispute and having a judgement levied against you may deplete your finances, leaving you bankrupt.

Asset protection should ideally begin before a danger arises. It is more difficult to block creditors that already have a claim from accessing assets that putting assets beyond creditor reach before a dispute occurs. Courts can reverse the transfer of certain assets if done to avoid paying creditors.

To illustrate, enhancing and tailoring your home and auto insurance can serve as a form of asset protection. However, for more robust safeguards, additional steps become essential. For instance, establishing a limited liability company (LLC) or a corporation may be a prudent move. An LLC can offer protection for assets like rental properties or real estate, while a corporation can serve as the owner of your business. Strengthening this approach involves securing a life insurance policy and arranging a life insurance trust to shield the cash value of the policy. Lastly, one of the most potent yet intricate and restrictive tools is an asset protection trust. This trust, which might be situated domestically or abroad, may necessitate placing the protected property under the oversight of a third-party trustee.

If you are interested in creating an asset protection plan, the experienced Michigan attorneys at Neumann Law Group can help you get started. Not all of the instruments for asset protection are necessary in every case, but we can help you find out what will work for you. With our advisement and counsel, you can feel confident that your assets are protected in a legal and ethical manner. Our Michigan trust and estate lawyers will help you formulate and execute a comprehensive plan to protect all of your assets.

During the intake process, we will assess your specific situation, identifying potential risks and liabilities that could threaten your assets. This involves reviewing your financial situation, business activities, and any potential legal exposures. Based on the assessment, we can help you decide what appropriate legal instruments to use to protect your assets. This may include creating trusts, limited liability companies (LLCs), family limited partnerships (FLPs), or other entities that provide a layer of protection against creditors.

An integral part of asset protection is estate planning. Our lawyers will help you create a comprehensive estate plan that includes wills, trusts, and other legal instruments to ensure the smooth transfer of assets to your heirs while minimizing exposure to potential creditors. If you own a business, your lawyer can assist in structuring your business in a way that separates personal and business assets. This may involve establishing a legal entity such as an LLC or corporation to shield personal assets from business-related liabilities.

We can also help establish trusts designed to protect assets from creditors. Irrevocable trusts, such as spendthrift trusts, can provide a level of protection by limiting creditors’ access to the trust assets. In some jurisdictions, homestead exemptions can protect your primary residence from certain creditors. Our lawyers can discuss this with you to help you understand and leverage these exemptions to safeguard your home.

While insurance is not a substitute for an asset protection plan, it is a crucial component. We can work with you to assess your insurance coverage and identify any gaps that may be addressed through legal means.

If you are looking to start working on a plan to protect your assets from creditors or other threats, we can help. Our Michigan estate planning attorneys understand how to use state and federal laws to legally protect your assets from incursion. We represent clients for Michigan trust and estate issues throughout the state, with offices in Detroit, Grand Rapids, and Traverse City, as well as in Los Angeles, Boston, and New York. Call 800-525-6386 for a free consultation.