Asset Protection

Asset Protection Attorney in Denver, Colorado

Asset protection is a significant element of financial planning intended to protect assets from creditor claims. Individuals or business entities use asset protection strategies in limiting creditors’ access to seize certain assets while operating within the boundaries of debtor-creditor law. If you own significant personal assets, you may choose to use asset protection to shield your assets in case of a payment default. Regardless of your age, health, and wealth, asset protection planning is an important step in preparing for the good future of your family and loved ones. In this process, you ensure that your children, surviving spouse, and family members will receive financial support after you pass. Ideally, it is advisable to have a plan in place before something bad happens. Asset protection is not a replacement for life insurance, but it can complement your insurance policies to satisfy creditors. The Law Office of Clark Daniel Dray, a credible Denver asset protection lawyer, will help you devise the best asset protection plans for your family’s future. We can guide you in creating trusts and take advantage of various estate planning tools. We will assist you in administering these agreements while successfully resolving any possible disputes. Call us now at (303) 900-8598 to schedule a consultation!    

Why is Asset Protection Necessary?

Asset protection is very important if you have any money, investments, or property that you want to protect. Alternatively, creditors may come and try to take away your assets for various reasons. If you own a business, you also need to make sure you have a solid financial plan in place to protect your assets. A knowledgeable asset protection lawyer in Colorado can help you understand the significance of asset protection planning. Asset protection is an overall strategy followed by the execution of any of several steps that are recommended by the attorney to give you the best possible protection. While creditors engage in developing and planning for the best debt collection strategies, debtors use asset protection planning for additional security. Asset protection keeps your property and money secure during your lifetime, as well as ensures that you can leave a legacy to loved ones. There are many reasons why asset protection planning is important including:

• The risk of incapacity
• The risk of business losses
• The risk of going into a nursing home
• Losses due to estate tax
• The risks presented by your heirs (Inheritance)

Having well-prepared asset protection and a real estate plan can give you peace of mind. You can build a shield around most of your assets to keep them out of the hands of creditors and judgement holders.

How Does Asset Protection Work?

Asset protection planning is based on the analysis of various factors that determine the degree of protection required. The first step that you will take in the asset protection process is to seek legal help from a competent Denver asset protection attorney. Since there is no one single way to ensure asset protection, you may want to find a lawyer who specializes in multiple legal disciplines. Most business owners want to protect their assets from creditors. You may opt to convert your property into an offshore asset protection trust. It means that the property will be out of the jurisdiction of the local courts, so no one will have a right to claim them. Note that a court judgment can easily seize assets under your name. However, those assets not under your name are safe from seizure because they do not belong to you as an individual. Understanding the state’s requirement is, therefore, crucial as far as asset protection is concerned. What asset protection does is help asset owners insulate assets legally. It ensures that while insulating assets, businesses, and individuals do not engage in illegal practices such as concealing assets, fraudulent transfer, contempt, bankruptcy fraud, or tax evasion. Asset protection may involve executing a range of legal estate planning documents that transfer decision-making power over some of your assets to bankruptcy trustees. It may include steps to create various corporate entities and transfer your assets to these entities because of the protections that they provide The most important thing to remember is that a qualified Denver asset protection attorney will have to start putting the plan in place immediately because any asset protection steps that are taken after a lawsuit is filed may be considered a fraudulent conveyance, and then disallowed.  

What are the Asset Protection Strategies?

Many different techniques can be used to protect different types of assets. All asset protection techniques have one thing in common: They each make it more difficult for a creditor to find or take assets. Several different asset protection strategies are available depending on your financial situation, your needs, and your plans for the future. An experienced asset protection lawyer in Colorado can explain the various asset protection strategies that can help shield your valuable assets. The first step towards asset protection involves purchasing insurance that can provide a wide range of protection. You need to ensure that insurance policy limits are in line with the current assets. It is considered as the first line of defense against liability. However, insurance alone does not always protect you to the extent that you need and when you require it. Several different asset protection strategies will be described below.

Using Corporations, Limited Partnerships (LPs), and Limited Liability Companies (LLCs)

Owners of corporations, limited partnerships, and limited liability companies (LLCs) are usually protected by the government through limited liability laws, whereby individual owners are not held liable for the legal entity or organization’s debts. When you own something through a corporation or a limited liability company (LLC), it can protect your personal assets. If someone files a lawsuit against your corporation, they will be able to go after assets owned by the corporation, but not ones you own personally. However, it is often deemed unethical to use the above mentioned methods to protect personal assets.  

Using Asset Protection Trusts (APTs)

An asset protection trust (APT) is a type of trust bank that holds assets based on the discretion of the settlor to protect the assets from creditors. It is also known as the strongest method of asset protection. The primary purpose of asset protection trusts is to protect your assets from creditors. Setting up an asset protection trust means you are transferring ownership of your assets to a trust that is to be managed by the trustee. It is irrevocable, meaning any asset that is transferred into the trust is permanent. If someone files a lawsuit against you or a creditor comes after you, they shouldn’t be able to access the assets that you transferred into the irrevocable trust.  

Transferring Property Rights

An individual may transfer the legal right to an asset to their spouse, relative, or a trusted friend to protect it from creditors’ claims. This allows the debtor to possess their asset without the risk of losing it to creditors. However, it also presents a huge risk in case of conflict with family members or friends (e.g., a divorce) since they will legally own the assets. You can also transfer property to your spouse’s name or hold the property jointly with your spouse. In some states, joint tenancy in the property is enough to shield it from creditors. Through state law, most legal jurisdictions regulate the fraudulent transfers and the debtor may be held accountable for deliberately delaying/defaulting on a payment, leading to fines and/or time in jail.    

Hire a Denver Asset Protection Lawyer

Asset protection planning isn’t just for wealthy and influential people. If you have any money, property, or investments that you want to protect from creditors, you should create an asset protection plan. Estate planning is also important when you are young because you can protect more of your assets if you take action early.  The first thing that you need to do when looking for an asset protection attorney is to pay close attention to the attorney’s experience. You could be subject to significant liability based on what you do for a living. The asset protection strategy that will work for you may not be as effective for another individual. Our competent Denver asset protection lawyers at The Law Office of Clark Daniel Dray have years of experience implementing various strategies to provide our clients with secured asset protection. Our estate planning law firm can help our clients and their families find the best asset protection solutions. We use different strategies to create an asset protection plan that is especially made for your specific situation. When it comes to protecting your assets, do not delay! Schedule your free initial consultation with us today.