1.
Failing to understand
the purpose of Asset
Protection: Remember,
Asset protection does
not make you “judgment
proof.᾿
2. Waiting until
the last minute
to begin planning:
It’s more effective
and least expensive
to plan on
protecting
your assets
before you
have legal
problems.
3. Believing that
it is too late
to protect
you assets:
It is never
too late to
improve protection.
Anything is
better than
doing nothing.
4. Having the belief
that creditors
are either
stupid, lazy
or both: Never
underestimate your adversaries’ skill and intelligence. Always keep in
mind that your creditors
and their attorneys are not stupid.
5. Failing to comprehend
your business’
vulnerability:
Remember that
the shares of common stock you own in your professional practice are
vulnerable
to creditor
attack.
6. Not understanding
what is meant
by fraudulent
transfers and
conveyances:
Whatever you may have read or heard, you cannot protect your assets
simply by giving them
to family members.
7. Misunderstanding
what is meant
by salary exemption:
These are traps
for single
business owners.
8. Confusing estate
planning with
asset protection:
Asset protection
is part of estate planning, but a living trust or will does absolutely
nothing
to
protect your assets from creditors.
9. Relinquishing
control over
your assets:
Some believe
(or have read
or been told)
that the easiest
asset protection
plan is
just giving
someone else control
over your wealth. This is false; it is not a good solution
to do so.
If
you would like more information regarding asset protection, trusts, family
limited partnerships or the subject of this article please call or email our
office.
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