Playing Asset Protection in Defensive Mode
December 17, 2015
As we cannot protect your life in every possible contingency, a good defense can be a good offense against those who would otherwise take your assets.
This includes umbrella insurance to supplement your liability insurance, perhaps equal to your net worth or a multiple of a net worth. This can help to defend from attack as can statutory exemptions which might vary from state to state. Careful placement of your assets can also help whether with a less liable spouse, an LLC or an S Corp. You should always work with an asset protection attorney who has experience in this field to determine what is most appropriate for you.
Both an LLC and an S Corp are flow through structures where taxes are reported on personal returns. Another option is to use a family limited partnership which can dissuade creditors since they cannot access partnership assets and can procure only limited access to distributions.
