LAW OFFICE OF DAVID CARL HILL

ASSET PROTECTION

Asset protection planning consists of organizing your assets in such a manner as will allow you to enjoy their benefits while reducing the risk of losing them due to unforeseen circumstances in the future.

Asset Protection Planning is Legal:  Some people believe that there is something illegal about sheltering your assets. Quite the opposite is true in most cases. Hiding assets from known creditors, including the IRS, is fraudulent and may often be illegal. The best asset protection strategy may fall short in such circumstances. However, appropriate strategies can protect you and your family from a catastrophic financial disaster that may be beyond your control.

If I do not have any creditors, why do I need to be concerned?
We live in a very litigious society. Literally millions of lawsuits are filed every year. Any experienced attorney can tell you about many instances where families are financially devastated because they failed to protect their assets. The following are some examples of such catastrophes.

A grandmother loaned money to her alcoholic grandson. He used the money to purchase a truck. Shortly thereafter, he struck and seriously injured a young man. The young man sued both the driver and his grandmother. The grandmother was found liable under a theory of "negligent entrustment." The verdict exceeded $600,000. A father owned a small business. His son took a company vehicle to run business errands. The son was intoxicated. His car collided with another and the other driver was killed. The father’s business was held liable. Since it was a sole proprietorship, all the father’s personal assets became subject to the ensuing judgment.

• How do I assess my risk? Obviously not everyone is in significant danger of being sued. However, there are a number of factors that increase your chances of being dragged into litigation. These factors include, but are not limited to: failure to carry adequate liability insurance, self employment (particularly if you have employees, high customer traffic, or engage in work that may be dangerous in any degree), rental property ownership, teenage drivers, leadership in public or private organizations.

  Asset Protection Devices:There are a number of different devices that can be used to shelter assets from creditors. They include:

• Limited Partnership :
• Limited Liability Company :
• Corporation :
• Asset Protection Trust