For over 30 years we have helped clients adopt strategies that can protect their assets from attachment by creditors and by government. We will do a thorough risk assessment, explain options for protecting your assets, design a comprehensive plan, and implement the strategies to safeguard what you own. Our asset protection practice includes the following:
Risk Avoidance (conduct)
Risk Transfer (insurance)
Risk Defense (settle or win)
Risk Protection (entities)
Protect wealth from taxes
Protect wealth for retirement
Protect wealth for spouse
Protect wealth for heirs
A. UNIFORM FRAUDULENT TRANSFERS ACT
Transfers will be deemed to be in fraud of creditors if:
- The transfer was made with actual intent “to hinder, delay or defraud creditors”
- The debtor did not receive reasonably equivalent value for the property transferred; and
- The debtor was insolvent at the time of the transfer, or became insolvent due to the transfer. Result:
- The transfer can be set aside by a judge,
- The transferred property can be seized by creditors, and
- The transfer could result in criminal penalties. (Penal Code § 154)
B. BADGES OF FRAUD
- if the transfer was to an insider
- if you retained possession or control after the transfer
- if the transfer occurred after a law suit or a threat of a law suit
C. TO AVOID FRAUDULENT TRANSFER ISSUES
TIMING: Do asset protection before you need it!
SOLVENCY: In order to validate that you are not violating the Act due to being insolvent at the time of transfer, or that you became insolvent as a result of the transfer, you should complete an Affidavit of Accuracy & Solvency.
PURPOSE: You should transfer assets for reasons unrelated to hindering creditors: Income tax planning; Business Planning; Estate Planning; Divorce Planning; Medi-Care/ Medi-Cal Planning.
THE LITIGATION PROBLEM
THE RISE IN LITIGATION
Law suits are at an epidemic increase in the U.S. Anyone who is wealthy or is perceived as being a high net worth individual is a target for a lawsuit. Over 20 million lawsuits were filed in the US last year. 1 out of 5 adults will be sued this year.
You face exposure as a result of:
- Owning your home or other real property
- Spouse • Children
- Joint accounts • Joint tax returns • Divorce
- Having a neighbor • Helping a neighbor
- Owning or running a business • Having employees
- Having a business partner
- Being an officer or director of a corporation
- High-risk professions (eg. doctors, dentists, architects, attorneys, brokers, builders, etc.)
WHAT’S FUELING GROWTH
- Novel legal theories
- Unrestrained Juries
- Contingent fee arrangments
- Aggressive attorney tactics used to force a favorable settlement
The range of available planning options diminishes rapidly with the occurrence of each new liability phase.
Implementing in phases avoids the appearance of a “grand scheme.” It is best to blend implementation strategies in with ordinary business decisions.
The primary purpose of the planning must be for reasons other than asset protection (control cash flow, facilitate annual giving, reduce income taxes)
Choose jurisdictions whose laws are more friendly to debtors. Choice should preferably fit your existing or anticipated methods of operation.
Diversify by method & jurisdiction; lowers the profile of assets; increases flexibility to settle.
In the event of a claim or lawsuit. Settlement should be a primary goal. Asset Protection is the last resort – not the first resort.
Circumstances and laws change. All it takes is one bad court judgment to weaken a current planning technique.
Sometimes the worst methods work. Sometimes the best methods don’t.
Allebest & Associates can help you protect your assets. Timing is critical. Don’t delay. Call today for a free, no obligation consultation (949) 454-1774, or
Call today for a free, no obligation analysis of your situation:
(949) 454-1774 or