February 27, 2019

When consulting with your estate planning lawyer about putting together an LLC for tax and business purposes, one of the most common reasons for doing so is asset protect. A major goal of asset protection planning is to move assets into a strategic tool, such as a trust, to eliminate or reduce any exposure to liabilities.

This has to do with protecting the individual from liability overall, financially and with their estate plan. Special care must be given to transfers that are done for the purposes of avoiding creditors. Some of these could be classified as fraudulent if you don’t have an experienced asset protection planning attorney to help you.

A practitioner in the field of asset protection planning law is in a strong position to help identify the asset protection planning strategies necessary and to recommend implementation methods.

The formation of an LLC is one of the most popular ways to address asset protection planning and is often recommended before an individual purchase a partial of commercial real estate.

The purpose of establishing an LLC could be to prevent the client from being exposed to individual liability. Restructuring the holdings to engage in asset protection planning could be a conversation to have with your estate planning professional.

Transferring assets inside an LLC can protect the assets from future claims from creditors who are attempting to take that money from the LLC owner. If you have questions about the process of asset protection planning, schedule a consultation with an attorney today.