Asset protection planning enhances trust and mitigates threats to your business and personal properties from legal entities with malicious intent. The Robbins Estate Law legal strategy is vital for those at risk of loss due to potential lawsuits, probates, creditors or bankruptcies.
The best practice for employing a dependent asset protection plan is to begin administering your legal structures right now. Our firm applies strategies tailored to the assets owned and the types of creditors likely to pursue potential claims. Included are exempting your assets from the claims of creditors, limiting your liability through legal entities, and transferring your risk through insurance. If your assets hold value, act today and speak to an experienced attorney with a plan for your professional and business resources.
What Is Asset Protection?
To apply asset protection, individuals adopt strategies that shield their personal wealth and other entities from illegal practices, potential creditor claims, or substantial security threats. In Texas, individuals must use state exemptions available to protect their assets under applicable law. Maximizing your protection by converting non-exempt assets into exempt assets is just one step towards securing your estate.
Expert advice is prudent to establish a proactive plan which contains all properties. We understand the importance of preserving your property for the sake of your and your family’s future. Our team of experienced members seeks to provide legal property and asset management solutions at various levels. Contact us or visit our office in Austin, Texas to discuss a trust plan that addresses current concerns for your business and professional needs.
Why Do You Need Asset Protection
Using legal concepts to protect valuable assets should be a priority for business owners and professionals. Implementing a plan to obscure assets from creditors or other legal entities is encouraged if individuals use the appropriate devices.
Our asset protection attorneys are interested in developing an honest plan to oppose any attacks that search for or locate the value of the identified or inherited estate. When contesting asset protection, imposing financial privacy measures can initiate the journey towards safeguarding your most valued properties.
Exempting Assets in Texas
State and federal laws exempt some of your assets from the claims of creditors. Click here to download a listing of Texas’s exempt assets; note that while some states allow you to choose either the state or federal exemptions, in Texas you must use the state exemptions and federal bankruptcy exemptions are not available.
Once you have identified the protected asset classes available to you under applicable law, it may be prudent to maximize your protection by converting non-exempt assets into exempt assets.
Limiting Liability for Professionals & Business Owners
Many entrepreneurs operate their businesses as sole proprietors rather than through a legal entity, such as a Corporation or a Limited Liability Company. Whether their business is home-based or in the Fortune 500, these business owners are attracted by the informality of sole proprietorship. They also do not want to incur legal fees to create and maintain a legal entity. However, in addition to other advantages, conducting business through a legal entity may offer substantial risk management benefits.
While lawsuits brought against a sole proprietorship are real lawsuits against the owner’s personal assets, lawsuits against a properly created and maintained legal entity are real lawsuits against the entity’s assets. Nevertheless, the selection of an appropriate legal entity is critical for managing your risk.
Transferring Risk with Insurance
When was the last time you reviewed the details of your liability insurance program with your insurance professionals? Are your policies current? Are the coverage limits adequate and are the deductibles reasonable? Have you scrutinized the policies for loopholes? Remember: the fundamental philosophy of any insurance coverage is to pay a premium you can afford to transfer a risk you cannot afford. Take time to understand both the risks you have retained and the risks you have transferred.