A common theme we emphasize to affluent individual clients is to prepare for future lawsuits BEFORE they happen. After the car accident, the divorce filing or the slip and fall accident on your property it is typically too late to do anything in an attempt to protect your assets from those making claims against you. Good (and effective) asset protection planning is done before there is a problem.
A recent article in Bloomberg addresses this topic and provides several examples of how assets can be protected from creditors, if done properly…and timely. This excerpt really stood out when we read the article:
“About 90 percent of the time when I get a call about asset-protection planning I turn it down,” because an incident that could trigger a claim or precede a bankruptcy, such as a car accident or falling behind on mortgage payments, has already happened, Husbands said.
The vast majority of inquires we receive about asset protection strategies are from people who have already been sued, or who have already fallen behind on debts and have had foreclosure or other actions threatened against them. At that time it is simply too late for us to do anything to help protect the family wealth. The ideal time to consider asset protection strategies is during the estate planning process, which should be an ongoing process for individuals with any sort of wealth.
To talk to a Penzien & McBride, PLLC attorney about incorporating asset protection into an existing or pending estate plan, give us a call at (586) 690-4400 or contact us through our contact page.