…Proper Asset Protection is most appropriately done when the client knows that he or she has no outstanding claims, i.e., the skies are perfectly clear of creditors. Asset Protection is all about avoiding fraudulent transfers, not designing and implementing them.
Plans are made with the intent to put them into action in the future (if necessary). Asset protection planning is no different, although many people attempt this type of planning entirely too late.
A recent Forbes article is a good reminder that asset protection is like fire insurance – the best time to take out a policy (i.e., make proper asset protection plans) is before the fire department arrives. The article is appropriately titled “Existence Of Claim Renders Some Clients Seeking Asset Protection Effectively Dead On Arrival.”
Asset protection is about making sure matters are structured now to protect them if a legal claim may threaten them later. If there already is a claim, then any act to protect assets becomes suspect and reversible (or punishable).
If you have reason to protect your assets due to some future risk you can envision, then now is the time to plan. Courts do not look favorably on last minute plays to protect assets.
Consult with your estate planning attorney on all of your asset protection needs. Planning now will ensure peace of mind for the future.
Reference: Forbes (January 31, 2013) “Existence Of Claim Renders Some Clients Seeking Asset Protection Effectively Dead On Arrival”