Asset protection via a trust can be an important part of estate planning. It can keep your property out of the reach of someone who may attempt to sue you. You may face a lawsuit for virtually any reason. You may be sued for negligence after becoming involved in an automobile accident or as part of the foreclosure process on your home. A lawsuit can put your financial nest egg in jeopardy. This may leave you unable to pass on as many of your assets as you’d hoped to your loved ones when you die.
Many assets aren’t exempt from the reach of possible creditors. You can keep creditors and others from being able to lay claim to yours if you engage in asset protection planning. You must sit down and do this well in advance of being sued, however. If a person transfers assets to a trust to avoid paying a possible creditor, for example, then that could be considered fraud.
Asset protection planning is about preserving what you do have for when you’re retired and being able to pass on something to your heirs. Mental incapacitation can not only leave you physically and mentally compromised, but it can also negatively impact your spouse and any minor children that you may have.
You must have a way to protect your family should something happen to you. Many individuals establish a limited liability company and set up an irrevocable trust to provide for their loved ones once they’re no longer here.
If you want to protect your assets and have your estate avoid the probate process once you’re gone, then consult with an attorney here in California. Your Fullerton lawyer can review the list of the assets that you’re aiming to protect from judgments and creditors and advise you which trust will best meet your financial goals.