Paramus Asset Protection Planning
On behalf of David Whitlock at Whitlock Canter LLC
Asset Protection Planning is the process of protecting a Client’s assets from potential creditors. There are several techniques available that can be used as tools to protect a Client’s assets. Whitlock Canter LLC can assist clients in protecting their assets with the formation and funding of specialized trusts and the formation and funding of certain entities, such as a limited partnership or a limited liability company. Some clients seek a more aggressive asset protection approach, which often involves the use of off-shore planning. While our Paramus law firm does not practice off-shore planning, it can recommend competent counsel and work with such counsel to meet the Clients’ needs.
Anyone can get sued. Lawsuits can stem from car accidents, credit card debt, bank foreclosures, or unhappy customers, among many other things. If someone wins a monetary judgment against you, your family could become bankrupt trying to pay it off. To keep your assets away from creditors, you need to move them somewhere where creditors can’t reach them. Asset protection techniques include maximizing contributions to IRAs, moving funds to an irrevocable trust, retitling various assets, or using limited liability companies or family limited partnerships.
To develop an asset protection plan, you need to talk to a New Jersey attorney. Your lawyer can discuss your short- and long-term financial goals and help you create a plan that will work for you.
It is important to note that asset protection planning only works if you act before you are sued. Under the law, you may not defraud current creditors. If you are already being sued or if you know you are going to be sued and you transfer assets so that creditors can’t reach them, the court will reverse the transfer. That is why it is a good idea to put a plan into place now — before it is too late.