New York Asset Protection Planning Frequently Asked Questions
Asset protection planning is making use of legal opportunities to put assets outside the reach of future predators. It is legal planning that does not involve fraudulent agreements or trying to evade tax responsibilities, rather the techniques used by a New York asset protection planning attorney are those that have been tested overtime and are fully legal.Q: What are the biggest threats faced by businesses, entrepreneurs, and wealthy individuals?
In United States, we live in a highly-litigated atmosphere. This means that litigation poses the greatest risk to wealth in the United States because attorneys and plaintiffs have recognized that filing lawsuits is a profitable business model. Even the scare of a lawsuit can encourage someone to settle and lose plenty of their assets.Q: What legal solutions are available to avoid litigation threats?
When properly structured, an asset protection plan can help to protect the assets of partnerships, corporations, individuals, and LLCs from potential creditors as well as litigation.Q: Can U.S. judgements be enforced against off-shore assets?
If your assets are placed inside an appropriately developed assets protection plan and stored in the proper jurisdiction, a U.S. judgment cannot be enforced against them. In the event that a plaintiff intends to attack your off-shore plan abroad, they will face a reduced statute of limitations with a maximum of two years, a litigation system that does not allow for contingency attorney's fees, and a great deal of upfront costs.Q: Doesn't a revocable living trust serve as my asset protection plan?
Revocable living trusts give essentially no protection for your assets and are only intended to ensure that your estate skips the probate process when you pass away. Although, there are some shields of privacy afforded with a revocable living trust, a court order can demand that you revoke it and pay your creditors.Q: Can litigation be deterred by asset protection planning?
Many plaintiff's attorneys will not accept a case unless they are sure they can get paid and an asset protection plan's very existence can make it challenging for these attorneys to collect their fees. If you are ever sued, there is a good chance that you may be able to settle your case more effectively once the asset protection plan is discovered.Q: Can I protect assets by giving them to my children or spouse?
You may lose control of the assets that you give to your children or a spouse and in the income associated with those gifted assets. You could also be facing gift taxes if you give them to anyone other than your spouse or if they exceed a certain amount. If you make a gift while a creditor is lurking, a court could elect undue gift.Q: Does an asset protection planning serve in the same way that an LLC does?
Certain assets cannot be held inside an LLC. A jury can decide in certain situations that they can pierce the corporate veil and obliterate an LLC's protection. This is why you need an experienced New York asset protection planning attorney.Q: Do estate planning and asset protection planning work together?
When you have an existing estate plan, your New York protection planning attorney can evaluate your needs and identify how these plans can work together and serve to complement one another.Q: Are there tax consequences for asset protection structures?
The tax structure is relatively neutral whether you choose to use a section 541 special power of appointment trust or a portable off-shore trust.Q: What criteria are evaluated to select off-shore jurisdictions?
Certain qualifying countries have favorable tax laws that help the economy, a stable social system in government and modern telecommunications' capabilities, making it a great selection for your asset protection planning jurisdiction location. Consulting with a lawyer is strongly recommended to increase your chances of success.Q: How to find the right lawyer for asset protection planning Help?
Look for someone who has been serving clients in this capacity for years so that you have the peace of mind that your lawyer knows the available tools and strategies to help you.