You have worked for years to build wealth to benefit you and your family. But without proper estate planning, lawsuits and creditors could decimate what you worked so hard to build. Fortunately, several types of asset protection can safeguard your estate from debt. If you have questions about protecting your estate from creditors, the top estate planners in Ohio at The Law Office of John C. Grundy can help you. Mr. Grundy will learn about your situation and offer the best legal advice to protect your estate.
Asset Protection Overview
Asset protection is how you legally protect assets from your creditors. People with assets such as real estate, stocks, and businesses want to take measures to protect their wealth. This can be done by protecting assets from lawsuits, creditors, and even spouses through several methods below:
Domestic Asset Protection Trust
Some legal authorities note that a domestic asset protection trust is one of the most affordable ways to protect your assets from lawsuits. This type of trust lets you protect your wealth from future lawsuits and creditors so it can be passed on to your loved ones when you pass on. The Ohio Domestic Asset Protection Trust is an irrevocable trust that can effectively protect your assets from lawsuits and creditors.
Insurance Policies
Some liability insurance policies could protect your hard-earned assets. Three are an umbrella policy, a malpractice policy for a healthcare provider, and a life insurance policy. Most life insurance policies are exempt from creditor seizure if they obtain a court judgment. An umbrella policy is on top of liability coverage you already have via your homeowner’s or other liability policy.
Retirement Plans
Often, a creditor cannot touch your retirement plans, including a 401(k) or IRA. However, some creditors could seize part of your bank account if you owe back taxes or alimony payments.
LLCs
A limited liability company or LLC can be set up to house a business’s assets. This legal structure can be used to protect personal assets from being seized by creditors. In many cases, your home, bank account, or car could not be seized from a creditor, but your business assets in the LCC would not be off-limits.
Alternative Dispute Resolution
Mediation, arbitration, and other alternative dispute resolution can also be used to avoid creditors. For example, an employer can benefit from using alternative dispute resolution, requiring workers to solve disputes through arbitration, not lawsuits.
Prenuptial Agreements
If a prenuptial agreement is signed before marriage, it could protect some assets and future ones that a spouse owns instead of being held jointly by the couple when they divorce.
Speak To Our Top Estate Planners In Ohio
At The Law Office of John C. Grundy, our top estate planners in Ohio can review your estate plan and recommend strategies to keep creditors at bay. Please call our office today at (330) 637-9030 to schedule a consultation. Our law office offers proven legal counseling with tools such as wills, living wills, trusts, powers of attorney, life insurance trusts, and more.