Asset Protection and Planning in Sherman Oaks & Glendale in Glendale, CA
Protecting the wealth that you have accumulated, no matter how large or small, is our biggest concern. Without property asset protection planning, your hard earned assets are at risk of being depleted by unscrupulous creditors and lawsuits. We will evaluate your overall assets and business structures to develop a strategy to create a plan of legal protection.
What Is Asset Protection
With asset protection your goal is to keep your property, whether it is real property, cash or stocks and bonds, safe from being taken by someone who wins a lawsuit against you. The lawsuit can be any type of lawsuit. For example, your 16 year old daughter causes a serious car accident or someone falls on one of your investments properties. The possibilities are endless when it comes to people finding reasons to sue you, especially in this day and age.
By evaluating your various assets and business structures, we can create a plan that will shield your assets from potential creditors. We use differently legal methods of doing this such as creating an LLC or Corporation. We will assist you with every step of the creation and implementation process. You can click here to view a short Webinar on the various type of entities available and how they work.
Here are a few types of popular methods we use in some of our asset protection plans:
- Limited Liability Company (Llc)
An LLC is a legal entity that offers full limited liability protection to all of the owners, yet has a pas through tax status. Further, an LLC protects the business from personal lawsuits that may be filed against the individual members.
A Corporation is a legal entity that is separate from its owners. The owners of a corporation are called “shareholders.” A corporation is formed by submitting Articles of Incorporation to the state. Corporations are taxed separately from their shareholders at a corporate tax rate. Because a Corporation is a separate entity, shareholders are not liable for the Corporation’s debts and liabilities.
- Limited Partnership
A Limited Partnership is a legal entity that is similar to a General Partnership (discussed below) except there is generally one general partner and one or more limited partners. The general partners remain personally liable for any legal actions and debts the Limited Partnership may face, while the limited partners are only liable to the extent of their investment in the Limited Partnership.
- General Partnership
A General Partnership is a legal entity that is made up of an association of two or more persons doing business together. Each of the general partners is personally liable for any legal actions and debts the General Partnership may face.
When Should You Begin Asset Protection Planning?
Ideally, before someone sues you, but asset protection planning can be done at any time, even after you have been sued. It is best to do asset protection planning at a time when you do not anticipate any lawsuits coming your way. That is, as a shield, rather than a sword. During our initial estate planning meeting we will also discuss potential asset protection techniques that may be beneficial to you, depending on your situation.
What You Should Do To Prepare?
When evaluating your overall financial goals, we will discuss your short term and long term financial goals. You should be prepared to answer these questions along with questions regarding your current and future sources of income, how much money you will need for retirement, and how much you would like to pass to your loved ones at you death.
Once we have examined your financial goals, we will examine the types of assets you have accumulated and create a plan to shield you.