Asset Protection

Whether you are involved in a high risk occupation such as a physician, attorney, CPA, business owner or real estate developer or you simply see the increasingly litigious nature of our society, the attorneys at Hallock & Hallock can help you navigate the complex asset protection planning strategies that are available to you.  Asset protection planning is the process of analyzing ownership of assets and re-arranging ownership of those assets as needed to ensure maximum protection, maximum use of exemptions and to minimize risk of loss in future litigation.  Asset protection is not evasion of taxes or defrauding current creditors. To be effective, asset protection plans must be properly designed, drafted and implemented.  An asset protection plan is never stronger than its weakest link.  Asset protection planning can involve the simple and the exotic.

When engaging in asset protection planning, thought should be given to both above ground planning (planning while you are alive) and below ground planning (planning after your death).  Above ground asset protection planning includes:
  • Adequate insurance;
  • Proper use of existing exemptions;
  • Use of entities such as limited liability companies (LLCs) or Corporations;
  • The use of special trusts such as Domestic Asset Protection Trusts (sometimes called Self-Settled Trusts) or Offshore Trusts. 
While many assume otherwise, a traditional revocable living trust provides no asset protection for the trust maker during his or her life.  However, upon the death of the first spouse to die proper below ground asset protection planning can provide asset protection for the beneficiaries, including protection from divorce, remarriage, creditors and predators.

The attorneys at Hallock & Hallock can provide the guidance necessary for you to navigate this complex area and bring you peace of mind.  We will analyze and advise you on asset protection strategies including the proper choice of jurisdiction that will help you achieve your goals and objectives.