Insulating Your Assets Against Lawsuits: Getting Started

March 10, 2015

Lance Armstrong has done it- insulated his assets from being totally exposed to creditors. But there are reasons that other people outside of public figures should considering doing the same. While it’s very difficult to imagine all of your money being entirely protected from creditors, there are steps you can take to protect yourself with business planning and estate planning. shutterstock_258583025

One of the approaches to doing this is setting up “hurdles” for creditors. While technically this allows the creditors to still gain access to your assets, the structure of the hurdle is such that they will be unable to do so without having to “pay to play.” For some creditors, it’s simply too expensive to tear through your careful planning. Many opt to settle instead.

Anyone at risk of being sued should consider asset protection planning, because all it takes is one lawsuit to expose your home and a few cars to major risk. Step one in this process is ensuring that the proper insurance policies are in place, particularly those that limit liability. This kind of critical umbrella coverage is essential for safeguarding against the high costs of even just one lawsuit from a car accident or similar incident.

A second layer can be done using trusts that help to shield assets. Money for heirs is placed inside the trusts to protect those assets, but trusts can also be good tools for protecting children from the fallout of a divorce settlement or a lawsuit. Make sure you’ve taken an all-encompassing approach to your asset protection planning. Contact us today to get started or review your existing plan at info@lawesq.net.


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Inherited IRAs: What Families Need to Know When a Spouse or Adult Child Inherits a Retirement Account

Understanding the rules for inherited IRAs is essential to avoiding costly mistakes. Learn the key differences between spouse and non-spouse beneficiaries, required distributions, and important planning considerations. An Individual Retirement Account (IRA) is often one of the ...

<p>The post Inherited IRAs: What Families Need to Know When a Spouse or Adult Child Inherits a Retirement Account first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Mid-Year Planning Checklist for Business Owners and High-Net-Worth Families: Estate, Tax & Financial Strategies to Review Before Year-End

Mid-year is the ideal time for business owners and high-net-worth families to review estate plans, tax strategies, retirement planning, and wealth transfer opportunities before year-end. As the calendar reaches its midpoint, many business owners and affluent families are focused on growing their businesses, managing investments, and enjoying the summer months. However, mid-year is also ...

<p>The post Mid-Year Planning Checklist for Business Owners and High-Net-Worth Families: Estate, Tax & Financial Strategies to Review Before Year-End first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

The Power of Gifting: A Smart Strategy for Estate, Tax, and Financial Planning

Discover how strategic gifting can help reduce future estate taxes, support loved ones, and create a lasting legacy as part of a comprehensive estate and financial planning strategy. When most people think about estate planning, they picture wills, trusts, and beneficiary designations. While those documents are essential, one often-overlooked strategy can provide ...

<p>The post The Power of Gifting: A Smart Strategy for Estate, Tax, and Financial Planning first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>