Oftentimes asset protection can be coupled with estate planning as a long-term financial safeguard that more and more individuals are taking advantage of. Asset protection planning helps to ensure that the property you worked so hard to attain never is subject to removal in the event that a lawsuit is filed against you. Regardless of the reason for a lawsuit, foreclosure or even negligent actions, exempt assets are not permitted to be removed from you.
In the event that a lawsuit is filed against you, and you have not sought asset protection planning services, all of your assets are considered nonexempt. This means that they are subject to claims that are made against you and can be removed as payment in the event that your lawsuit is lost. A lack of appropriate asset planning has left thousands of unknowing individuals without vehicles, homes and other valuable assets that are not easily replaced. For that reason it is often suggested that individuals create their asset protection plans when their estate planning is in place, so that you have a clear understanding of the assets that you can denote as exempt and those assets that mean the most to you.
Too many individuals make the mistake of not protecting their assets early enough, and then will seek the services of an asset protection attorney when signs that a creditor or lawsuit have already considering removing their assets. Traditionally, a judge or jury will be able to reverse a protection plan that is not in place prior to a lawsuit, and there are laws in place to protect creditors from individuals attempting to protect their assets after they are already in the process of being removed. Because you don’t know what lies in the future and you have worked hard to obtain the assets that you have, early asset protection planning is suggested for anyone who wants to protect their valuables.
For more information regarding how Nishad Khan P.L. can assist with property acquisitions, contact us today!