Asset Protection for Business Owners
By using well-thought-out asset protection strategies, business owners may protect their assets from loss. What type of loss might a business owner face? Both business and personal assets may be vulnerable to seizure due to lawsuits, creditors, or bankruptcies.
Some business entities offer greater protection than others. Limited liability companies and corporations offer great risk management benefits, but have their pitfalls also. We know how to use law to your advantage in selecting the right business entity.
You’ve worked hard to build your business and your wealth. Talk to us today about protecting them.
Protection Against Lawsuits
One way to safeguard your assets is to give them, or title them, to a family member. However, in doing so, you put your assets at risk to their creditors including lawsuits, bankruptcy divorce. Transferring assets to an irrevocable trust is usually a much better way to protect assets against judgments obtained from a lawsuit. There are pros and cons to any asset protection strategy. We offer our clients the best strategies based on their circumstances.
Cayman Accounts – Offshore asset protection trusts.
Another way to protect assets is through an offshore asset protection trust or irrevocable domestic asset protection trust (DAPT). Offshore asset protection trusts are set up in countries that are friendly to trust makers and unfriendly to foreign creditors.
Alabama does not allow the use of DAPTs. While they can be set up in a state that does allow DAPTs, there’s just no guarantee at this time that an Alabama resident’s assets would truly be protected.
One Important Thing to Remember.
Transferring assets under certain circumstances can be considered fraudulent transfers. Consult with an attorney before attempting to safeguard any assets.
We Can Help Protect your Assets.
The strategies mentioned above are not the only options. At Adams & Miller, P.C., we offer our clients a plan customized to their special needs. Call us at 256-237-3339 or use our Contact Form to let us know you’re ready to develop asset protection strategies, as well as general estate planning.